Problem Set 4 template

Problem Set 4 template - 9 Total tax on ordinay income...

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Template for Answers to Income Tax Exercise Question 1 Sale Price Depreciation Basis Gain (from facts) (from facts) (from facts) Feed raised NA Feeder calves raised NA Beef heifers raised NA Beef cows raised NA Machinery Buildings Land Total Question 2 Capital gains Feed Feeder calves Beef heifers Beef cows Machinery Buildings Land Total Question 3 Tax on all ordinary income 1 Total ordinary income from asset sales 2 Other ordinary income 20,000 3 Total ordinary taxable income 4 Bottom of 28% bracket (from tax table) 131,450 5 Excess over bottom of 28% bracket (line 3 minus line 4) 6 28% tax rate 0.28 7 Tax on excess over bottom of 28% bracket (line 5 x 28%) 8 Tax on income in lower brackets (from tax table) 25,550
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Unformatted text preview: 9 Total tax on ordinay income (line 7 plus line 8) Minus tax on $20,000 of other income 10 Other ordinary income 11 Bottom of 15% bracket (from tax table) 16,050 12 Excess over bottom of 15% bracket (line 10 minus line 11) 13 15% tax rate 0.15 14 Tax on excess over bottom of 15% bracket (line 12 x 15%) 15 Tax on income in 10% bracket (from tax table) 1,605 16 Total tax on other $20,000 of ordinary income (line 14 plus line 15) 17 Net tax on asset sales (line 9 minus line 16) Purchase Price (purchase price minus depreciation or zero for raised assets) (sale price minus basis) Ordinary income Self-employment income...
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Problem Set 4 template - 9 Total tax on ordinay income...

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