Faith, a single taxpayer, had the following income and deductions for the tax year 2006: a. What
Question:
Faith, a single taxpayer, had the following income and deductions for the tax year 2006:
a. What is Faith’s taxable income and tax liability for the year?
b. What are Faith’s marginal, average, and effective tax rates?
Transcribed Image Text:
INCOME: Salary S70,000 Business income 30,000 Qualifying dividends 10,000 Tax-exempt income 20,000 TOTAL INCOME S130.000 DEDUCTIONS: Business expenses S20,000 Itemized deductions 12,000 Personal exemption 3,400 TOTAL DEDUCTIONS S35.400
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A TAXABLE INCOME Salary 70000 Business income business expenses 10000 Qualifying dividends 1...View the full answer
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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