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igor_vitrenko [27]
3 years ago
9

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries,

they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. They are also able to claim $2,900 in recovery rebate credit ($2,400 for Marc and Michelle and $500 for Matthew). Assume they did not receive the recovery rebate in advance. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules).
A. What is Marc and Michelle’s gross income?
B. What is Marc and Michelle’s adjusted gross income?
C. What is the total amount of Marc and Michelle’s deductions from AGI?
D. What is Marc and Michelle’s taxable income?
E. What is Marc and Michelle’s taxes payable or refund due for the year?
Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer:

I will use the 2020 tax schedule since recovery rebate credit applies to 2020:

Marc and Michelle's gross income = Marc's and Michelle's salaries + interest from corporate bonds = $64,000 + $12,000 + $500 = $76,500

they should choose the standard deduction since it is higher than their itemized deductions = ($24,400)

contribution to IRA = ($2,500)

alimony payment = ($1,500) the divorce agreement was settled on 2005

Marc and Michelle's taxable income = $48,100

Marc and Michelle's tax liability = $1,975 + [12% x ($48,100 - $19,750)] = $5,377

Interests on municipal bonds is not taxable.

The amount of taxes that they owe = $5,377 - $3,500 (federal tax withholdings) = $1,877

Refundable tax credits:

$2,000 in child tax credit

$2,900 in recovery rebate credit

total = $4,900

taxes payable or refund = tax liability - refundable tax credits = $1,877 - $4,900 = -$3,023.

Marc and Michelle should get a refund for $3,023

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4 0
3 years ago
What are the four main distinctions between universities and liberal arts colleges?
AnnZ [28]

Answer:

according to what i  had read

Explanation:

What is the difference between liberal arts college and a university?

The main difference between liberal arts college majors and university majors is that liberal arts schools generally offer one expansive area of study, whereas at universities, the same major may be broken into two or more degree tracks. ... They can major in mathematics and still end up in an engineering career.

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8 0
3 years ago
A customer’s specification for weight of an antiseptic cream sold in plastic tubes is 4.00 ounces ± 0.02 ounces. The target p
nasty-shy [4]

Answer:

Cp = 1.667

Cpk = 1.25

The filling process will deliver the customer's specifications since Cp > 1 and Cpk > 1

Explanation:

Given data:

Customer Specification           3.98          4.02

Process Average                      4.005

Process Standard Deviation    0.004

<u>Calculate the Cp and Cpk values</u>

Cp = Δ customer specification / ( 6 * std )

     = (4.02 - 3.98 ) / ( 6 * 0.04 )

     = 0.04 / 0.24 = 0.1667 + 1 = 1.667

Cpk ( upper ) = ( 4.02 - process average ) / ( 3* std )

                      = ( 4.02 - 4.005 ) / ( 3 * 0.004 )  = 1.25

Cpk ( lower ) = ( process average - 3.98 ) / ( 3 * std )

                     = ( 4.005 - 3.98 ) / ( 3 * 0.04 ) = 2.083

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3 0
3 years ago
Is the U.S. airline industry attractive? Describe Southwest Airlines’ strategy. What are the most important strategic choices? W
MA_775_DIABLO [31]

Answer:

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4. They are deliberate in their branding and public image.

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Yes, their strategy is sustainable because it is both cost effective, efficient and produces result.

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1. Unfavorable Legislation: Regulatory changes in commercial aviation that directly influences their current business model will directly affect their impeccable record.

2. They will be at a disadvantage position if pitted against larger airline companies.

3. Their pilot population is limited.

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From the foregoing, it is evident that southwest has a sustainable business model that should make them become an international airline

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