Consumer surplus exists because of the

Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of marr

Lisa [10]

Answer:

a. $8,361

b. $1,2610

c. 26,564

d. 5,427

e. 59,883

Explanation:

a.

Taxable Income = $62,449 - $560

= $61,889

Finding the tax liability in tables:

Tax on 61,889

= [1,845 +(61,889 - 18,450) × 15%]

= 1,845 + 6,516

= 8,361

Subtracting or Deducting the tax on the dividend income

= $560 × 0%

= 0

Therefore, the tax liability is $8,361

b.

Taxable Income = $12,932 - $322

= $12,610

Tax liability is $1,2610

c.

Taxable income = $144,290 - $4,384

= $139,906

Tax will be:

= 1,845 (74,900 - 18,450) × 15% + (139,906 - 74,900) × 25%

= 1,845 + 8,467.5 + 16,251.5

= $26,564

d.

Taxable income = $43,297 - $971

= $42,326

Tax liability will be:

= [1,845 + (42,326 - 18,450) × 15%

= 1,845 + 3,581.4

= 5,427

e.

Taxable income = $262,403 - $12,396

= $250,007

Tax on the qualified income will be:

= $12,396 × 15%

= $1,859.4

Tax liability will be:

= 1,845 {74,900 - 18,450) × 15% + (151,200 - 74,900) × 25% + (230,450 - 151,200) × 28% + (250,007 - 230,450) × 33%

= 1,845 + 8,460 + 19,075 + 22,190 + 6,453.81

= $58,024

Total tax liability will be:

= $58,024 + $1,860

= $59,883

Note: The values are taken from the tax liability table.

4 0

3 years ago

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $984,000. Selected information f

Sati [7]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1).

Particular Amount ($) Tax rate Tax amount($)

Accounting income $984,000

Less-Interest income on municipal bond -$40,000

Income to taxation $944,000 $0.25 $236,000

Less-tax return in excess of depreciation -$64,000 0.25 $16,000

Warranty expenses($30,000-$20,000) $10,000 0.25 $2,500

Taxable income $890,000 0.25 $222,500

Now

Journal Entry

Income tax expense A/c Dr.$236,000

Deferred tax asset A/c Dr.$2500

To Deferred tax liability A/c $16,000

To Income tax payable A/c $222,500

(Being the income tax expense for 2021 is recorded )

2 .Net Income of Fidelity = Accounting Income - Income Tax Expense

= $984,000 - $236,000

= $784,000

6 0

3 years ago

The potential exposure that any individual firm bears that the second party to any financial contract will be unable to fulfill

leonid [27]

Counterparty risk is the potential exposure that any individual firm bears that the second party to any financial contract will be unable to fulfill its obligations under any contract.

Given an incomplete sentence related to potential exposure of the contract.

We are required to fill the blank with the appropriate word which means that the potential exposure that any individual bears that the second party to any financial contract will not be able to fulfill its obligations under a contract.

The appropriate word is counterparty risk.

Counterparty risk is basically the probability that the other party in an investment, credit,or trading transaction may not fulfill its part of the deal and may default on the contractual obligations.

Hence counterparty risk is the potential exposure that any individual firm bears that the second party to any financial contract will be unable to fulfill its obligations under any contract.

Learn more about contract at brainly.com/question/5746834

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8 0

2 years ago

"there is no incentive for firms to enter or exit the industry in the long" run when

sertanlavr [38]

There is no incentive for firms to enter or exit the industry in the long run when there is a competitive equilibrium or perfect competition. Perfect competition is when the market price of an item is controlled by the buyers and the sellers. There are tons of people wanting to buy and selling similar products and the are all equally fighting for the same target market.

8 0

4 years ago

On January 3, Halsall Corporation purchased 1,800 shares of the company's $1 par value common stock as treasury stock, payin

Salsk061 [2.6K]

Answer:

The journal entries alongwith its explanation are as under:

Explanation:

Journal entry at Jan 3, to record purchase of treasury stock would include the recording of treasury stock at the price paid to the shareholders for purchase of the stock, the journal entry is as under:

Dr Treasury Stock (1800 share*$8 per share) $14,400

Cr Cash $14,400

Journal entry at Jan 30, of selling treasury stock would include the elimination of the treasury stock at the amount purchased and the remainder will will be the Paid-In Capital, the journal entry is as under:

Dr Cash (1200*9) $10,800

Cr Treasury stock (1200*8) $9,600

Cr Paid in capital from sale of treasury stock $1,200

4 0

3 years ago