Question

In: Accounting

In 2019, Sam is single, 35 years old, rents an apartment for 400 a month and...

In 2019, Sam is single, 35 years old, rents an apartment for 400 a month and makes a charitable contribution of 3,000. Sam’s AGI is 47,000. Sam’s taxable income is:

(a) 32,000

(b) 34,800

(c) 44,000

(d) 42,000

Taxable income for an individual can be:

(a) AGI reduced by itemized deductions

(b) AGI reduced by personal and dependency exemptions

(c) AGI reduced by the greater of standard deduction or itemized deductions

(d) AGI reduced by deductions from AGI and personal and dependency exemptions

Which of the following is progressive?

(a) Sales tax

(b) Excise tax

(c) Property tax

(d) Income tax

Solutions

Expert Solution

ans 1
AGI $47,000
Less: standard deduction 12200
Taxable income $34,800
In this case as itemize deduction is lower than standard deduction
hence standard deduction taken
Option b $34800
ans 2
Option C AGI reduced by the greater of standard deduction or itemized deductions
As from 2019 there is no personal exemption hence to calculate AGI we need to
deduct higher if standard deduction or itemwize deduction
ans 3
c) Property taxes
Progressive taxes are the taxes in which higher income earners pay more than lower income
earners
If any doubt please comment

ekkarill92 answered 2 years ago
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