On December 30, you decide to make a $3,700 charitable donation. (Assume you itemize your deductions.)...

 

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On December 30, you decide to make a $3,700 charitable donation. (Assume you itemize your deductions.) a. If you are in the 22 percent tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year? b. If you deposit that tax savings in a savings account for the next five years at 4 percent, what will be the future value of that account? Use Exhibit 1-A. Note: Round time value factor to 3 decimal places and final answer to 2 decimal places. a. Tax savings for the current year b. Future value of tax savings On December 30, you decide to make a $3,700 charitable donation. (Assume you itemize your deductions.) a. If you are in the 22 percent tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year? b. If you deposit that tax savings in a savings account for the next five years at 4 percent, what will be the future value of that account? Use Exhibit 1-A. Note: Round time value factor to 3 decimal places and final answer to 2 decimal places. a. Tax savings for the current year b. Future value of tax savings

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A Calculation of tax saving Tax savingItemized deductiontax rate Here Itemized deduction is equal to ... View the full answer