Latesha, a single taxpayer, had the following income and deductions for the tax year 2015: a. Compute
Question:
a. Compute Latesha€™s taxable income and federal tax liability for 2015 (round to dollars).
b. Compute Latesha€™s marginal, average, and effective tax rates.
c. For tax planning purposes, which of the three rates in Part b is the most important?
Transcribed Image Text:
INCOME Salary $ 80,000 Business Income 25,000 Interest income from bonds 10,000 Tax-exempt bond interest TOTAL INCOME Business expenses 5.000 120,000 DEDUCTIONS $ 9,500 ltemized deductions 20,000 Personal exemption 4.000 TOTAL DEDUCTIONS 33,500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
a b Marginal rate 25 From tax rate schedule Average r...View the full answer
Answered By
Shameen Tahir
The following are details of my Areas of Effectiveness. The following are details of my Areas of Effectiveness English Language Proficiency, Organization Behavior , consumer Behavior and Marketing, Communication, Applied Statistics, Research Methods , Cognitive & Affective Processes, Cognitive & Affective Processes, Data Analysis in Research, Human Resources Management ,Research Project,
Social Psychology, Personality Psychology, Introduction to Applied Areas of Psychology,
Behavioral Neurosdence , Historical and Contemporary Issues in Psychology, Measurement in Psychology, experimental Psychology,
Business Ethics Business Ethics An introduction to business studies Organization & Management Legal Environment of Business Information Systems in Organizations Operations Management Global Business Policies Industrial Organization Business Strategy Information Management and Technology Company Structure and Organizational Management Accounting & Auditing Financial Accounting Managerial Accounting Accounting for strategy implementation Financial accounting Introduction to bookkeeping and accounting Marketing Marketing Management Professional Development Strategies Business Communications Business planning Commerce & Technology Human resource management General Management Conflict management Leadership Organizational Leadership Supply Chain Management Law Corporate Strategy Creative Writing Analytical Reading & Writing Other Expertise Risk Management Entrepreneurship Management science Organizational behavior Project management Financial Analysis, Research & Companies Valuation And any kind of Excel Queries.
4.70+
16+ Reviews
34+ Question Solved
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Question Posted:
Students also viewed these Business Law questions
-
Brad and Angie had the following income and deductions during 2016: Salaries $110,000 Interest income $10,000 Itemized deductions $16,000 Taxes withheld during the year $15,000 Calculate Brad and...
-
Cindy had the following income and deductions listed on her 2020 individual income tax return. Business income $37,000 Interest income on personal investments $5,000 Less Business expenses $40,000...
-
You client, Rob, has the following income and deductions for the financial year ended 30 June 2018: salary, $32,000; bank interest received, $150; and allowable deductions for special work clothing,...
-
The partnership of King, Queen and Prince engaged you to audit its accounting records. Some accounts are on the accrual basis and others are on the cash basis. The partnership's books were closed at...
-
The following information was available for The Gibson Group Inc. (TGGI) for 2016: 1. Class A common shares, 10 votes per share, unlimited authorized, 7,530,000 issued and outstanding on January 1,...
-
A humidifier uses a rotating disk of radius r, which is partially submerged in water. The most evaporation occurs when the exposed wetted region (shown as the upper shaded region in Figure 26) is...
-
True or False: A rotor that has been installed in the field, experiences a rise in vibration levels and the ends are in phase. Eventually, the vibration levels call for the machine to be taken off...
-
Sweeny Corporation owns 60 percent of Bitner Companys shares. Partial 20X2 financial data for the companies and consolidated entity were as follows: On January 1, 20X2, Sweenys inventory contained...
-
Selling price Variable expenses Contribution margin . Per Unit of Sales $ 80 52 100% 65 $ 28 35% Fixed expenses are $76,000 per month and the company is selling 4,600 units per month. Exercise 6-5...
-
Delicious Daves Maple Syrup, a Vermont corporation, has property in the following states Property State Beginning Ending Maine $ 983,797 $ 1,057,056 Massachusetts $ 146,706 $ 263,049 New Hampshire $...
-
Explain how a computer can assist a tax practitioner in tax planning activities and making complex tax calculations.
-
The governor of your state stated in a recent political speech that he has never supported any income tax increases as the tax rates have remained at the same level during his entire term of office....
-
Explain three control ratios used for performance evaluation.
-
State whether each process is quasistatic, adiabatic, both, or neither for the defined system: (a) Water boils in a pot. System: water, (b) A balloon filled with air is slowly compressed and cooled....
-
Do you think the decision to cheat is a completely calculated decision? Or do people sometimes make split decisions to cheat? Why or why not?
-
Which are the most likely units for a measured temperature with a numerical value of \((a)-322\) and (b) 0 ?
-
Do you think everyone is capable of being creative, or do you think certain people are more predisposed to being creative in an organization? Explain.
-
When the volume of a gas increases, is the work done by the gas on its surroundings positive, negative, or zero?
-
Solve the linear equation with the x-intercept method. Check your answer. Approximate the solution to the nearest thousandth whenever appropriate. 2x-4 = 0
-
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
-
In 2016, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Ginger's gift tax liability for 2016 if she and Greg elect gift splitting and Greg gave...
-
Janet Mason filed a 2013 gift tax return to report the gift on June 3, 2013, of closely held stock in Mason Meat Co., Inc. The tax return, which your firm prepared, reflected a value of $1,500 per...
-
Consult the case Estate of Edward S. Redstone, 145 T.C. No. 11 (2015), a rather complicated case, and answer the following uncomplicated questions: a. When did the alleged gift occur, and when did...
-
s Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined...
-
How do visionary leaders navigate the complexities of organizational dynamics to cultivate a culture of innovation and adaptability ? Explain
-
Finnish Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are...
Study smarter with the SolutionInn App