The Stevenson family tells you the following regarding their financial situation for 2017: Their salary is $99,000. They paid real estate taxes of $6,000 and interest on their mortgage of $8,000. They earned interest from $1,000 from a savings account and $2,800 from a Cortland City water system upgrade bond. They paid $2,000 to various charities. Lastly, they made $1,000 on the sale of Ford stock they has owned for 5 months. They also made $6,000 on a piece of real estate they have owned for 8 years. The couple has one child. Exemptions are $3,800 each.

1. What is the family's total taxable income?

A. $73,600

B. $74,200

C. $80,000

D. $76,600

E. $76,200

2. What is the family's total tax liability given the brackets below:

Bracket Rate

0-$20,000 15%

$20,000.01-$60,000 20%

$60,00.01-$120,000 25%

over $120,000.01 30%

A. $15,400

B. $14,850

C. $14,750

D. $14,400

E. $15,100

Answer rating: 100% (QA)

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