All categories

3 years ago

Chuck, a single taxpayer, earns $79,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds.

Business

1 answer:

allochka39001 [22]3 years ago

5 0

Answer:

a) Chuck's total taxable income = $119,480

since Chuck is a single filer, his marginal tax rate for 2020 is 24%, and his tax liability for ordinary income = $14,605.50 + [24% x ($119,480 - $85,525)] = $14,605.50 + (24% x $33,955) = $22,754.70

the interest earned on municipal bonds is not taxed.

b) Chuck's total taxable income = $38,520

since Chuck is a single filer, his marginal tax rate for 2020 is 12%, and his tax liability for ordinary income = $987.50 + [12% x ($38,520 - $9,875)] = $987.50 + (12% x $28,645) = $4,424.90

the interest earned on municipal bonds is not taxed.

You might be interested in

Fact pattern 33-1a berry indicates that she is acting as an agent on behalf of an unidentified client—cuisine catering, llc—when

posledela

Liability to Desean for non performance of the contract may be imposed on BERRY AND CUISINE CATERING.
Berry is required by the law to perform the duties in the contract agreement, failure to do this will creates liability for Berry and in that case, both Berry and Cuisine catering will be liable, because Berry had said that she is working on behalf of Cusine catering, thus, Cusine catering is already a part of the contract.

8 0

3 years ago

Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

8 0

3 years ago

As Shirley responded to a personnel director's concerns about changing to the health-care plan her firm offered, she said, "I ca

erik [133]

Answer:

Reffeal

Explanation:

A letter of reference is an effective method for establishing clear communication with information needed to clarify possible doubts and bring credibility. It should be written in a formal manner, highlighting the strengths of the message to be conveyed beyond clear, accurate and honest language.

5 0

3 years ago

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Deter

Digiron [165]

Date Activities Units Acquired at Cost Units Sold at Retail

May 1 Beginning Inventory 150 units at $10.00

5 Purchase 220 units at $12.00

10 Sales 140 units at $20.00

15 Purchase 100 units at $13.00

24 Sales 90 units at $21.0

Answer:

Value of closing inventory =$1290

Explanation:

Under the LIFO inventory system units of inventory are priced using the price of the most recent batch purchased and this continues in turn.

The value of closing inventory = Total cost of inventory available for sales - cost of goods sold

The cost of inventory sold would be determined as follows:

140 units :140 × $12=1,680

90 units : 90× $13 = 1,170

Total cost of goods = 1,680 + 1,170 = 2,850

Total cost of inventory available for sales would be equal to :

(150 × $10.00) + (220 ×$12.00) = 4,140

The value of closing inventory = Total cost of inventory available for sales - cost of goods sold

4,140 - 2,850 = $1290

Value of closing inventory =$1290

7 0

3 years ago

Contemporary governments promote 4 development by: Answer increasing 4 regulations. providing government ownership of 4es. permi

padilas [110]

Contemporary governments promote development by establishing a currency that's tradable in world markets.

3 0

3 years ago