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d1i1m1o1n [39]
3 years ago
15

Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18), and Jerol

d (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used only for vacations. She incurs $8,200 in itemized deductions.
A. Morgan's taxable income is $_____.

B. Using the Tax Rate Schedules (click here), tax liability for Morgan is $_____for 2019.

C. Compute Morgan's dependent tax credit.
Business
1 answer:
Stolb23 [73]3 years ago
5 0

Answer:

A) $71350

B) $10045

Explanation:

A) Morgan's taxable income

= Salary - IRA deduction - Greater of standard and itemized deduction

= $95000 - $5000 - $18650

= $71350

B) Tax liability for Morgan ( using tax rate schedules )

= ( 6162 ) + ( 71350 - 53700 ) * 22%

= $10045

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Softie, Inc. produces facial tissues. The company's contribution margin ratio is 77%. Fixed expenses are $240,400. To achieve a
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To achieve a target profit of $930,000, Softies' sales must be $1,520,000.

<h3>What is target profit?</h3>
  • Target profit is the amount of profit that a company's managers anticipate achieving by the conclusion of a specific accounting period.
  • Typically, the target profit is established from the budgeting process and is compared to the actual result in the income statement.
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