Chapter 1 Homework Solutions

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online