Chapter 1 Homework Solutions

# Chapter 1 Homework Solutions - CHAPTER ONE SOLUTIONS TO...

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CHAPTER ONE SOLUTIONS TO PROBLEM MATERIALS 1-5 Significant differences between computing a corporation's taxable income and computing an individual's taxable income include the following: Only individual taxpayers have deductions “for” adjusted gross income. Corporations simply compute gross income and then reduce it with allowable deductions to compute taxable income. Only individual taxpayers have a standard deduction or itemized deductions. Only individual taxpayers have personal and dependency exemptions. (Compare Exhibits 1-2 and 1-3, on p. 12.) PROBLEMS 1-18 a. A “given dollar amount” is the cumulative sum of the taxes determined for each previous bracket of income. The tax for each bracket amount of income is determined by multiplying the marginal rate by the bracket amount of income. The 2011 tax rate schedule for single taxpayers and the derivation of the “given” amounts are shown The 2011 Tax Rate Schedules for Individuals Single-Schedule X If Taxable Income is:

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## This document was uploaded on 11/03/2011 for the course ACCOUNTING 415 at Rutgers.

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Chapter 1 Homework Solutions - CHAPTER ONE SOLUTIONS TO...

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