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liberstina [14]
3 years ago
12

Suppose the tax rate is 0 on the first $20,000, 20 percent on the next $20,000, 30 percent on the next $20,000, 40 percent on th

e next $20,000, and 50 percent on all income over that. The Valenzuela family has an income of $80,000. What is the tax bill for this family?
Business
1 answer:
DENIUS [597]3 years ago
5 0

Answer:

income tax expense 18,000

Explanation:

we have to calcualte the taxable income on each bracket:

1st 20,000 tax free

$20001 to $40,000 are taxes at 20% Thus, 4,000 income tax

$40,001 to $60,000 are taxes at 30% Thus, 6,000 income tax

$60,001 to $80,000 are taxes at 40% Thus, 8,000 income tax

In total the income tax will be for $18,000

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Records or flash drive
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3 years ago
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Answer:

equipment    3,700

Explanation:

First we calcualte the values of the machine given up:

<u>traded-out assets</u>

purchased  23000

depreciation <u>20,000 </u>

book value   3,000

fair value   5,000

gain on disposal   2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash                   700

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total value         5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain       (2,000)

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The machine will enter the accounting with 3,700

journal entry

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acc del        20,000

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3 0
3 years ago
"A municipality has a tax rate of 18 mills. A piece of real property in the municipality is assessed at $180,000 and has a fair
White raven [17]

Answer:

$3,240

Explanation:

Calculation for the annual tax liability on the property

Using this formula

Annual tax liability= (Tax rate× Real property )

Where= Tax rate =18 million

Real property=180,000

Let plug in the formula

Annual tax liability=( .018x180000)

Annual tax liability=$3,240

Therefore the annual tax liability on the property is $3,240

5 0
3 years ago
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