Question
The following is a listing of tax considerations for John and Jane Alexander, who file jointly and have two children. John's salary $45,000 Jane's salary
The following is a listing of tax considerations for John and Jane Alexander, who file jointly and have two children.
| John's salary | $45,000 |
| Jane's salary | 50,000 |
| Real estate taxes | 4,000 |
| Interest from savings account | 1,500 |
| Interest from Arizona bonds | 2,000 |
| Interest on home mortgage | 3,000 |
| Contributions to charities | 1,500 |
| Gain on sale of stock held for 5 years | 6,000 |
Assume the following tax table:
| 0 - $10,000 | 10% |
| $10,001 - $35,000 | 15% |
| $35,001 - $65,000 | 25% |
| over $65,000 | 30% |
The personal exemption rate is $3,050
The long term capital gains rate for the family is 18%
a. How much is the Alexanders' taxable income?
b. What is the tax on their ordinary income?
c. What is their capital gains tax?
d. What is their overall average tax rate including the tax on capital gains?
e. What is their marginal tax rate on ordinary income?
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Internal Auditing Perceptions Of Managers And Audit Staff On Internal Audit Effectiveness Measures
Authors: Aderaw Ayaliew
1st Edition
3847345362, 978-3847345367
