1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katrin2010 [14]
3 years ago
8

Each year, Tom and Cindy Bates (married filing jointly) report itemized deductions of $20,000 (which includes an annual $4,000 p

ledge payment to their church). Upon the advice of a friend, they do the following: In early January 2019, they pay their 2018 pledge; during 2019, they pay the 2019 pledge; and in late December 2019, they prepay their 2020 pledge.
a. What are the Bateses trying to accomplish? To have their itemized deductions exceed the standard deduction .
b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2019? Assume that the itemized deductions of $20,000 already included one year of the church pledge payments. $ 12,000 What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2019 and 2020 are the same.) By concentrating their charitable contributions, their tax savings becomes $ 2,000 X.
Business
1 answer:
olchik [2.2K]3 years ago
5 0

Answer:

a. What are the Bateses trying to accomplish?

To have their itemized deductions exceed the standard deduction.

In 2019, the standard deduction was $24,400, so in order for itemizing to make sense, the total amount itemized must be above that threshold.

b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2019? Assume that the itemized deductions of $20,000 already included one year of the church pledge payments. $ 12,000 What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2019 and 2020 are the same.) By concentrating their charitable contributions, their tax savings becomes $ 2,000 X.

total itemized deductions = $20,000 + $4,000 + $4,000 = $28,000

tax savings = ($28,000 - $24,400) x 24% = $864

You might be interested in
Guidance and discipline strategies in emergency child care setting should ?
NeTakaya
As a licensed foster mom, the answer is F. All of above
4 0
2 years ago
Which tool of monetary policy allows the Federal Reserve to decrease the
mihalych1998 [28]
It's D. Increasing the reserve requirement on banks
6 0
2 years ago
Read 2 more answers
A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%. Which is true? The investm
irga5000 [103]

Answer:

The correct answer is B: The investment has a future value of $8,053

Explanation:

Giving the following information:

A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.

We need to calculate the final value of the investment. We will use the following formula:

FV= PV*(1+i)^n

FV= 5,000*1.10^5= $8,052.55

3 0
3 years ago
Biologists want to know how many fish are in a certain lake. on january 1, they removed 600 fish from the lake and tagged them.
Alenkasestr [34]
Biologists collected a random sample of 850 fish and 25 of them had been previously tagged. 850 : 25 = 34. It means that about 1/34 of all the fishes in the lake had been tagged. Therefore 600 * 34 = 20,400.
Answer: Based on this experiment, in the lake lives 20,400 fishes.
5 0
3 years ago
Define foreclosure economics.​
Kobotan [32]

Answer:

Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property

8 0
2 years ago
Other questions:
  • Which statement best summarizes the law of demand ?
    11·1 answer
  • What action may be taken if a bill stagnates in a house committee?
    15·1 answer
  • How do property rights benefit entrepreneurs?
    10·2 answers
  • What trade offs do you use when you use credit
    13·1 answer
  • Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as
    9·1 answer
  • All of the following are good ways to follow up with a new business contact except -
    15·1 answer
  • Your friend Ed has a money market mutual fund​ account, automatic deposit of his paycheck into an​ interest-bearing checking acc
    10·1 answer
  • Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as
    13·1 answer
  • What conditions would affect how much people would use my business?
    5·1 answer
  • The Saturday Evening Post was a niche magazine.<br><br> True<br> False
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!