Section 4 Inclass Quiz Solution

Section 4 Inclass Quiz Solution - (10,000) Less: Personal...

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Acc 200P Name: ________________________ Lab Section #_________________ Section 4 – Introduction to Taxation SOLUTION Shauna is a single adult with no children. During 2009, she had the following information available: Her gross income was $60,000. Deductions for adjusted gross income amounted to $3,000. Itemized deductions totaled $10,000. She is eligible for a standard deduction of $5,700. She is eligible for a personal exemption of $3,650. She had $7,000 in federal income taxes withheld. She has no tax credits. Based on this information, answer the following questions: 1. What is Shauna’s adjusted gross income (AGI)? $__ 57,000 ___ Gross income $60,000 Less: Deductions for AGI (3,000) AGI $57,000 2. What is Shauna’s taxable income? $__ 43,350 ____ AGI (see above) $57,000 Less: Itemized deductions
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Unformatted text preview: (10,000) Less: Personal Exemption (3,650) Taxable Income $43,350 3. Using the tax tables at the bottom of the page, calculate Shaunas tax liability. $_ 7,025 _____ $4,675 + .25(43,350 33,950) = $7,025 4. Calculate Shaunas tax due or refund. $_ 25 still due _______ 5. If Shauna had made $1,000 more in income during the year, what percentage of this amount would be paid in federal income taxes? 25% (or $250 more in tax would be due) Single: (2008 Tables) If taxable income is over --But not over --The tax is: $0 $8,025 10% of the amount over $0 $8,025 $32,550 $802.50 plus 15% of the amount over $8,025 $32,550 $78,850 $4,481.25 plus 25% of the amount over $32,550 $78,850 $164,550 $16,056.25 plus 28% of the amount over $78,850...
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This note was uploaded on 11/22/2010 for the course ACC 200 taught by Professor Buckless during the Spring '08 term at N.C. State.

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