7. Consider the following income tax rate structure. Rate Income bracket 5% Up to $50,000 + 10% $50,001 to $150,000 + 20% $150,001 and above Suppose Ms. James's annual income is $140,000 as a director in the Education Research Inc. She was offered a job as a managing director in the Advanced Research & Co., which would provid annual income of $165,000. What would be additional tax liability if she accepts the offer? A) $3,000 B) $4,000 C) $5,000 D) $3,500

7. Consider the following income tax rate structure. Rate Income bracket 5% Up to $50,000 + 10% $50,001 to $150,000 + 20% $150,001 and above Suppose Ms. James's annual income is $140,000 as a director in the Education Research Inc. She was offered a job as a managing director in the Advanced Research & Co., which would provid annual income of $165,000. What would be additional tax liability if she accepts the offer? A) $3,000 B) $4,000 C) $5,000 D) $3,500

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 31P

See similar textbooks

Similar questions

Given the following tax structure: Total tax Salary $ 10,000 $ 20,000 Тахрayer Mae $ 600 Pedro ??? a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.) Minimum tax b. This would result in what type of tax rate structure? Tax rate structure Progressive
A tax credit of $100 for a person in a 24 percent tax bracket would reduce a person's taxes owed by: Group of answer choices $10. $28. $76. $100. $24.
Suppose you earn $60,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $30,000. The second tax bracket, which taxes at 25 percent, ranges from $30,001 to $120,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number. %24
Assume your gross pay per pay period is $1,700 and you are in the 25 percent tax bracket. Calculate your net pay and spendable income if you save $170 per pay period after paying income tax on $1,700. (Do not round intermediate calculations.) Net Pay & Spendable Income Net pay Spendable income
If the tax rates are 15% on the first $50,000 of taxable income, and 20% on the next $25,000, and 25% on the next $25,000, what is the tax liability for an individual with $80,000 of taxable income, what is the marginal tax rate, and what is the average tax rate ? a. $10,250, 15%, and 20% b. $25,122, 22%, and 16% c. $11,345, 15%, and 34% d. $13,750, 25%, and 17.19%
9. Compute the prescribed minimum withholding tax of a manager whose monthly salary is P120 000 with transportation allowance of P20 000 and cost of living allowance of P25 000. How much will be her net earnings?
1. Consider the 2020 information for a single taxpayer without children: Situation A Situation B Wage Income Tax free intertest income Medical expenses paid State income taxes paid 85,000 105,000 2,200 2,200 7,950 3,800 450 3,800 Local property taxes paid Mortgage Interest paid Charitbale contributions 4,000 5,100 2,900 480 a. What is the total taxes owed under each scenario? b. In each scenario, what is the effective tax rate based on Taxable income? In each scenario, what is the marginal tax rate? C.
If you would have to pay $5,000 in taxes on $50,000 taxable income and $8,000 in taxes on $60,000 taxable income, then the marginal tax rate on the additional $10,000 of income is A.- 15 percent, and the average tax rate is 30 percent at the $60,000 income level. B.- 30 percent, and the average tax rate is about 13 percent at the $60,000 income level. C.- 30 percent, but average tax rates cannot be determined from the information given. D.- 30 percent, and the average tax rate is 20 percent at the $50,000 income level.
Mr. Borbon had the following data for his income tax return for the current year: Php 490, 000 150, 000 200, 000 120, 000 70, 000 320,000 Sales Personal Exemption Cost of Sales Administrative and Selling Expenses Personal Expenses Professional Income Graduated Income Tax Rate Effective January 1, 2018 Initial Basis 0-250,000 Over 250, 000 but not over 400, 000 Over 400,000 but not over 800,000 Over 800, 000 but not over 2,000, 000 Over 2, 000, 000 but not over 8, 000, 000 Over 8, 000, 000 Tax due In Excess -0- -0- |-0- +20% of the excess over 250,000 30,000 130,000 490, 000 2, 410, 000 +25% of the excess over 400,000 +30% of the excess over 800, 000 +32% of the excess over 2, 000, 000 +35% of the excess over 8, 000, 000 How much is the income tax due is he uses itemized deduction? O Php 24,000 O Php 52,500 O Php 42,500 O Php 10,000
Mr. Borbon had the following data for his income tax return for the current year: Php 490, 000 150, 000 200, 000 120, 000 70, 000 320,000 Sales Personal Exemption Cost of Sales Administrative and Selling Expenses Personal Expenses Professional Income Graduated Income Tax Rate Effective January 1, 2018 Initial Basis 0-250,000 Over 250, 000 but not over 400, 000 Over 400,000 but not over 800,000 Over 800, 000 but not over 2,000, 000 Over 2, 000, 000 but not over 8, 000, 000 Over 8, 000, 000 Tax due In Excess |-0- -0- -0- +20% of the excess over 250,000 30,000 +25% of the excess over 400,000 |+30% of the excess over 800, 000 |+32% of the excess over 2, 000, 000 +35% of the excess over 8, 000, 000 130,000 490, 000 2, 410, 000 If he opted to be taxed by 8%, how much is the tax due? O P70,000 O P64,800 O P44,800 O P133,000
Suppose there is a 10% tax on the first $20,000 of taxable income, a 20% tax on taxable income above $20,000 until $35,000, and a 30% tax on all taxable income above $35,000. There is a $10,000 exemption per person in a family. What is the marginal tax rate for a single mother making $45,000 who has three children? a)20% b)10% c)30% d)40%
Given the following tax structure, Taxpayer Salary Total tax $21,500 $1,032 $46,000 ??? Mae Pedro a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.) Minimum tax b. This would result in what type of tax rate structure? Tax rate structure