Fred and Ethel are married with two children and plan to file jointly a Their taxable income sources were as follows Wages and Salaries $42,381 Interest and Dividend Income $ 1,215 Capital Gains $ 3,092 Net Business Income $ 7,824 Compute their adjusted gross income b Compute their taxable income, ...

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Fred and Ethel are married with two children and plan to file jointly. a. Their taxable income

Question:

Fred and Ethel are married with two children and plan to file jointly.
a. Their taxable income sources were as follows.
Wages and Salaries ………………………………………$42,381
Interest and Income …………………………..$ 1,215
Capital Gains …………………………………………....$ 3,092
Net Business Income …………………………………....$ 7,824
Compute their adjusted gross income.
b. Compute their taxable income, given their personal exemptions and assuming that they take the standard deduction listed in Table 14.1.
c. Compute their tax liability using the tax rates in Table 14.2. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...