Question

In: Accounting

Brad and Angie had the following income and deductions during 2017: SALARIES $110,000 INTEREST INCOME 10,000...

Brad and Angie had the following income and deductions during 2017: SALARIES $110,000 INTEREST INCOME 10,000 ITEMIZED DEDUCTIONS 16,000 TAXES WITHHELD DURING YEAR 15,000 CALCULATE BRAND AND ANGI'S TAX LIABILITY DUE OR REFUND, ASSUMING THAT THEY HAVE 2 PERSONAL EXEMPTIONS. THEY FILE A JOINT RETURN.

Solutions

Expert Solution

Income
Salaries $        110,000
Interest income              10,000
Total Income $        120,000
Minus: Exclusions                        -  
Gross Income $        120,000
Minus: Deductions for AGI                        -  
Adjusted Gross Income (AGI)            120,000
Minus: Deductions from AGI:
Itemized deductions -16000
Personal exemption -8100            (24,100)
Taxable income              95,900
Tax        15,452.50 10452.50+25% x (95900-75900)
Minus: Taxes withheld            (15,000)
Liability              452.50
2017 rates used in calculation
Married Filing Jointly or Qualifying Widow(er)
Taxable Income Tax Rate
$0 – $18,650 10%
$18,651 – $75,900 $1,865 plus 15% of the amount over $18,650
$75,901 – $153,100 $10,452.50 plus 25% of the amount over $75,900
$153,101 – $233,350 $29,752.50 plus 28% of the amount over $153,100
$233,351 – $416,700 $52,222.50 plus 33% of the amount over $233,350
$416,701 – $470,700 $112,728 plus 35% of the amount over $416,700
$470,701 or more $131,628 plus 39.6% of the amount over $470,700

Related Solutions

37) Carmen and Marie had the following income and deductions during 2018: Salaries                            &nbs
37) Carmen and Marie had the following income and deductions during 2018: Salaries                                               $110,000 Interest income                                       5,000 Itemized deductions                               25,000 Taxes withheld during year                   11,000 Calculate Brad and Angie's tax liability due or refund. They file a joint tax return. $0 tax due. $679 tax due (liability). $1,083 refund. $1,083 tax due. 38) Husband and wife, who live in a common law state, are eligible to file a joint return for 2018, but elect to file separately. Wife has adjusted...
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...
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...
For the current year (Y-4) Fabco has gross income of $100,000 and deductions of $110,000 for...
For the current year (Y-4) Fabco has gross income of $100,000 and deductions of $110,000 for regular tax purposes. Three years ago (T-1) taxable income was $5,000. Two years ago (Y-2) taxable income was $10,000. Last year (Y-3) taxable income was $300,000. Next year (Y-5) it is anticipated that taxable income will be $275,000. Assume alternative minimum tax does not apply. What are the tax consequences to Fabco in the current year (Y-4)? What alternatives does Fabco have?
A bank had the following balance sheet during 2017. Also shown are the interest rates: Assets                          &nbsp
A bank had the following balance sheet during 2017. Also shown are the interest rates: Assets                            amount ($mm)                  rate, % Business Loans 50                                                6 Corporate Bonds               25                                                5 Government Bonds         18                                                2.5 Cash 6 Real assets 2 Liabilities Demand Deposits            36 0 Time Deposits 45                                                1.1 Inter-Bank Borrowing     15                                                1.25 Equity 5                   Calculate Net Interest Margin for the year.                   The bank also received $200,000 in non-interest (fee) income during the year, and paid $1.5mm in labor compensation and...
Tax Rates. Lillian, a single taxpayer, had the following income and deductions for the tax year...
Tax Rates. Lillian, a single taxpayer, had the following income and deductions for the tax year 2018: INCOME: Salary $ 90,000 Business Income 24,000 Interest income from taxable bonds 8,000 Tax-exempt bond interest 4,100 TOTAL INCOME 126,100 DEDUCTIONS: Business expenses $ 9,000 Itemized deductions 15,000 TOTAL DEDUCTIONS 24,000 a. Compute Lillian’s taxable income and federal tax liability for 2018 (round to dollars). b. Compute Lillian’s marginal, average, and effective tax rates. c. For tax planning purposes, which of the three...
Beamon Corporation had the following payroll for April: Officers' salaries $34,000 Sales salaries 67,000 Federal income...
Beamon Corporation had the following payroll for April: Officers' salaries $34,000 Sales salaries 67,000 Federal income taxes withheld 19,000 FICA taxes withheld 7,500 Health insurance premiums withheld 1,800 Union dues withheld 1,200 Salaries (included above) subject to federal unemployment taxes 55,000 Salaries (included above) subject to state unemployment taxes 58,000 Required Prepare journal entries on April 30 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the...
In 2019, a single engineer had a gross income of $68,000 and itemized deductions of $13,400....
In 2019, a single engineer had a gross income of $68,000 and itemized deductions of $13,400. Determine the amount of minimum federal tax he must pay.
During 2017​, Grant receives a $45,000 salary and has no deductions for AGI. In 2016​, Grant...
During 2017​, Grant receives a $45,000 salary and has no deductions for AGI. In 2016​, Grant had a $5,500 STCL available and no other capital losses or capital gains. Consider the following sales. An automobile purchased in 2012 for $11,200 and held for personal use is sold for $8,000. On April​ 10, 2017​, stock held for investment is sold for $32,000. The stock was acquired on November​ 20, 2016​, for $16,000. Salary? Net short-term capital gain (loss)? Net long-term capital...
Grouper Corporation had net sales of $2,427,000 and interest revenue of $31,500 during 2017. Expenses for...
Grouper Corporation had net sales of $2,427,000 and interest revenue of $31,500 during 2017. Expenses for 2017 were cost of goods sold $1,461,400, administrative expenses $212,500, selling expenses $296,600, and interest expense $50,800. Grouper’s tax rate is 30%. The corporation had 104,800 shares of common stock authorized and 73,590 shares issued and outstanding during 2017. Prepare a condensed multiple-step income statement for Grouper Corporation
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT