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
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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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