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ICE Princess25 [194]
3 years ago
7

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the followin

g relevant information: She received $117,000 in salary. She received $13,500 of dividend income. She received $5,700 of interest income on Home Depot bonds. She received $21,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,000. She received $11,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,400. Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. b. What is her marginal tax rate? Round your answer to 1 decimal place. c. What is her average tax rate?
Business
1 answer:
worty [1.4K]3 years ago
8 0

Answer:

Mary's income:

  • salary = $117,000
  • dividend income = $13,500
  • interest on bonds = $5,700
  • long term capital gains = $21,000 - $6,000 = $15,000
  • short term capital gains = $11,000 - $7,400 = $3,600

Mary's adjusted gross income:

  • taxable income = $117,000 + $13,500 + $5,700 + $3,600 = $139,800
  • capital gains = $15,000

Mary's exemption + itemized deduction = $4,000 + $7,500 = $11,500

  • since the exemption plus the itemized deductions are lower than the standard deduction, Mary should use the standard deduction ($12,200 > $11,500).

*since we are not given the table containing the tax bracket, I will use the current 2019 tax brackets:

A) taxable income = $139,800 - $12,200 = $127,600 + $15,000 (capital gains 15%)

federal tax liability = [$14,382.50 + 24% x ($127,600 - $84,200)] + ($15,000 x 15%) = ($14,382.50 + $10,416) + $2,250 = $24,798.50 + $2,250 = $27,048.50

B) Mary's marginal tax rate is 24%

C) Mary's average tax rate = $24,798.50 / $127,600 = 19.43%

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3 years ago
Refer to the following transactions.
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Answer:

1 a) + asset , + preferred stock

b) + asset , + preferred stock

c) + assets , + stockholder's equity

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journal entry

a) Debit bank 700000 Credit Preferred stock 700000

b) debit land 420000 , credit preferred stock 420000

c) debit bank 768000 credit stockholder's equity 768000

d) Debit investment 270000 credit bank 270000

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Explanation:

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8 0
3 years ago
You have $130,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect
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Answer:

Let X be the amount invested in stock A

Let 1-X be the amount invested in stock B

Expected rate = (Required rate of X* X) + (Required ratebof Y * (1-X))

0.146 = (0.128 * X) + (0.078 * (1-X))

0.146 = 0.128X + 0.078 -  0.078X

0.146 - 0.078 = 0.128X - 0.078X

X = 0.068/0.05

X = 1.36

Amount to be invested in Stick X = $130,000 * 1.36

= $176,000

Amount to be invested in Stock Y = (1-X) * Available amount

= (1-1.36) * $130,000

= $46,800

Therefore, the amount to be invested in Stick Y = -$46,800

Calculation of the portfolio beta

bp = w1b1 + w2b2 + ........ + wnbn

bp = (1.36*1.3) + ((-0.36) * 1.05)

bp = 1.768 - 0.378

bp = 1.29

Therefore, the portfolio beta is 1.39

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3 years ago
Why is it so difficult to correctly identify a new product or process as emerging technology?
Finger [1]

Answer:

Technology is defined by how people use scientific knowledge, and not only does scientific knowledge constantly change, but the way we use it is also constantly changing.

Emerging technologies refers to a new technology or technological innovations. The problem is that what can be considered new and how fast will it become obsolete? Our world is changing so fast, that current technology will be obsolete in just a few months, or maybe a year from now.

Because new technologies become old too fast, it is very difficult to identify them before they are no longer an innovation. Only those technologies that become mainstream can be clearly identified as emerging technologies, e.g. the iPhone was considered an emerging technology in 2007 and even though the first iPhone is obsolete now, it became mainstream technology.

5 0
3 years ago
Read 2 more answers
At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) b
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Answer: $7,740

Explanation:

Given, At December 31, Accounts receivable = $238,000

Allowance for uncollectible accounts = 3% of (accounts receivable)

∴ Allowance for uncollectible accounts = 3% of ($238,000 )

=$(0.03 ×238,000)                [3% = 0.03]

= $ (7140)

= $7,140

Allowance for uncollectible accounts (credit) before any adjustments= $600

The amount of the adjustment for uncollectible accounts = Allowance for uncollectible accounts +  $600

= $7,140 +  $600

= $7,740

Hence, The amount of the adjustment for uncollectible accounts would be: <u>$7,740.</u>

5 0
2 years ago
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