The Benjamin family had wage earnings of $192,000 in 2015. They received interest of $4,500 on...

The Benjamin family had wage earnings of $192,000 in 2015. They received interest of $4,500 on corporate bonds and $1,500 on bonds issued by the state. Their dividend income was $500, and they had a $1,000 long-term capital gain on the sale of securities. They paid real estate taxes of $1,450 and state income tax of $3,000, and they donated $550 to their church. They paid interest of $8,000 on their home mortgage. They have one dependent child. The exemption rate is $4,000 per person. Capital gains tax rate is 15%.

Single Individuals		Married Couples Filing Jointly
Income ($)	Rate (%)	Income ($)	Rate (%)
0-9,225	10	0-18,450	10
9,225-37,450	15	18,450-74,900	15
37,450-90,750	25	74,900-151,200	25
90,750-189,300	28	151,200-230,450	28
189,300-411,500	33	230,450-411,500	33
411,500-413,200	35	411,500-464,850	35
Over 413,200	39.6	Over 464,850	39.6

What was their tax liability for 2015 assuming they file jointly as a married couple? Use the Personal Tax Schedules given above. Round the answer to the nearest cent.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Makers Corp. had additions to retained earnings for the year just ended of $192,000. The firm...

Makers Corp. had additions to retained earnings for the year just ended of $192,000. The firm paid out $182,000 in cash dividends, and it has ending total equity of $4.87 million. The company currently has 100,000 shares of common stock outstanding. a. What are earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What are dividends per share? (Do not round intermediate calculations and round your answer to 2...

The Lindscomb family had the following income in 2015: Salaries: Mark $68,500 Ashley 55,200 Interest on...

The Lindscomb family had the following income in 2015: Salaries: Mark $68,500 Ashley 55,200 Interest on investments: IBM bonds $4,750 New York City bond 1,400 Savings account 2,600 The family made home mortgage payments that included interest of $16,480, and paid real estate (property) tax of $4,320 on their home. They also paid state income tax of $5,860 and donated $1,250 to well-known charities. The Lindscombs have three dependent children. The exemption rate is $4,000 per person. Use Personal Tax...

BUFFALO Ltd. had earnings per share of $5 as at December 31, 2015, but paid no...

BUFFALO Ltd. had earnings per share of $5 as at December 31, 2015, but paid no dividends. Earnings were expected to grow at 15.2 percent per year for the following five years. BUFFALO Ltd. will start paying dividends for the first time on December 31, 2020, distributing 50 percent of its earnings to shareholders. Earnings growth will be 6 percent per year for the next six years (that is, from January 1, 2021 through to December 31, 2026). Starting on...

Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common stock...

Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common stock (par $1; outstanding, 420,000 shares) $ 420,000 Preferred stock, 8% (par $10; outstanding, 20,200 shares) 202,000 Retained earnings 892,000 On December 31, 2015, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2013 or 2014. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount...

A company had earnings before interest and taxes of $1.5 million in the most recent year,...

A company had earnings before interest and taxes of $1.5 million in the most recent year, and an interest expense of $250,000. The company has a marginal corporate tax rate of 35%. What is the net income for the leveraged company? What about the same company had they not used leverage (debt)? a) If we compare the leveraged with the unleveraged company, how much was paid out to debt holders, equity holders, and total between the two? b) We should...

The Lindscomb family had the following income in 2012: Salaries: Mark $65,500 Ashley 52,600 Interest on...

The Lindscomb family had the following income in 2012: Salaries: Mark $65,500 Ashley 52,600 Interest on investments: IBM bonds $4,750 New York City bond 1,400 Savings account 2,600 The family made home mortgage payments that included interest of $16,480, and paid real estate (property) tax of $4,320 on the home. They also paid state income tax of $5,860 and donated $1,250 to well-known charities. The Lindscombs have three dependent children. The exemption rate is $3,650 per person. Use Personal Tax...

Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid...

Wayne Corporation had income from operations of $385,000, it received interest payments of $15,000, it paid interest of $20,000, it received dividends from another corporation of $10,000, and it paid $40,000 in dividends to its common stockholders. What is Wayne’s federal income tax? $141,700 $130,220 $122,760 $163,500 $155,200

Mount Hebron Electrical Company's financial statements indicated that the company had earnings before interest and taxes...

Mount Hebron Electrical Company's financial statements indicated that the company had earnings before interest and taxes of $793,000. The interest rate on its $842,000 debt was 8.95 percent. Calculate the taxes the company is likely to owe. What are the marginal and average tax rates for this company? (Round total taxes payable to 2 decimal places, e.g. 15.25 and other answers to 0 decimal places, e.g. 17%.) Total taxes payable $ Marginal tax rate % Average tax rate %

Subjects