Problem 10-37 (LO. 2, 3, 4, 5, 7, 8) Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2018. They present you with the following information: Bart Elizabeth Joint Salary Business net income Interest income Deductions for AGI Medical expenses State income tax Real estate tax Mortgage interest Unreimbursed employee expenses $38,000 400 2,400 10,427 900 $110,000 1,200 14,000 3,358 1,800 $2,200 3,800 4,200 1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally If an amount is zero, enter "O". Do not round your intermediate computations and round your final answers to the nearest dollar Complete the comparison table through AGI, then compute the total amount of the itemized deductions on the separate schedule before completing the remainder of the table Click here to access the 2018 tax rate schedule 2018 Tax Rate Schedules Single-Schedule X If taxable income is: Head of household-Schedule Z If taxable income is: of the ofthe But not But not The tax is: The tax is: 1096 38,700 $ 952.50 12% 4,453.50 22% 157,500 14,089.50 24% 200,000 32,089.50 32% 500,000 45,689.50+35% 150,689.50 37% 9,525 9,525 38,700 82,500 157,500 0 9,525 38,700 82,500 157,500 13,600 51,800 82,500 157,500 13,600 51,800 82,500 157,500 200,000 500,000 $1,360.00+12% 5,944.00 + 22% 12,698.00 + 24% 30,698.00 + 32% 44,298.00 + 35% 149,298.00 + 37% 13,600 51,800 82,500 157,500 200,000 500,000 82,500 500,000 500,000 500,000 Married filing separately-Schedule Y-2 Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable income is: of the If taxable income is: ofthe But not But not The tax is: The tax is: 1096 77,400 $ 1,905.00+12% 8,907.00 22% 315,000 28,179.00 24% 400,000 64,179.00 32% 600,000 91,379.00 35% 161,379.00 37% $9,525 38,700 82,500 157,500 200,000 300,000 19,050 19,050 77,400 165,000 315,000 19,050 77,400 165,000 315,000 $ 9,525 38,700 82,500 157,500 952.50 +12% 4,453.50 + 22% 14,089.50 + 24% 32,089.50 + 32% 45,689.50 + 35% 80,689.50 + 37% 9,525 38,700 82,500 157,500 200,000 300,000 165,000 600,000 600,000 300,000 Problem 10-37 (LO. 2, 3, 4, 5, 7, 8) Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2018. They present you with the following information: Bart Elizabeth Joint Salary Business net income Interest income Deductions for AGI Medical expenses State income tax Real estate tax Mortgage interest Unreimbursed employee expenses $38,000 400 2,400 10,427 900 $110,000 1,200 14,000 3,358 1,800 $2,200 3,800 4,200 1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally If an amount is zero, enter "O". Do not round your intermediate computations and round your final answers to the nearest dollar Complete the comparison table through AGI, then compute the total amount of the itemized deductions on the separate schedule before completing the remainder of the table Click here to access the 2018 tax rate schedule 2018 Tax Rate Schedules Single-Schedule X If taxable income is: Head of household-Schedule Z If taxable income is: of the ofthe But not But not The tax is: The tax is: 1096 38,700 $ 952.50 12% 4,453.50 22% 157,500 14,089.50 24% 200,000 32,089.50 32% 500,000 45,689.50+35% 150,689.50 37% 9,525 9,525 38,700 82,500 157,500 0 9,525 38,700 82,500 157,500 13,600 51,800 82,500 157,500 13,600 51,800 82,500 157,500 200,000 500,000 $1,360.00+12% 5,944.00 + 22% 12,698.00 + 24% 30,698.00 + 32% 44,298.00 + 35% 149,298.00 + 37% 13,600 51,800 82,500 157,500 200,000 500,000 82,500 500,000 500,000 500,000 Married filing separately-Schedule Y-2 Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable income is: of the If taxable income is: ofthe But not But not The tax is: The tax is: 1096 77,400 $ 1,905.00+12% 8,907.00 22% 315,000 28,179.00 24% 400,000 64,179.00 32% 600,000 91,379.00 35% 161,379.00 37% $9,525 38,700 82,500 157,500 200,000 300,000 19,050 19,050 77,400 165,000 315,000 19,050 77,400 165,000 315,000 $ 9,525 38,700 82,500 157,500 952.50 +12% 4,453.50 + 22% 14,089.50 + 24% 32,089.50 + 32% 45,689.50 + 35% 80,689.50 + 37% 9,525 38,700 82,500 157,500 200,000 300,000 165,000 600,000 600,000 300,000