chapter_9_problems solutions - 60,000 total gross income...

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40) a) Gross income 20,000 child care expenses 6,000 Applicable percent 32% dependent care credit 1920 b) Child care exp 1000 Gross income 23,000 Applicable percent 31% dependent care credit 310 c) for debra Gross income 20,000 child care expenses 3,000 Applicable percent 32% dependent care credit 960 child tax credit 1000 41) a) Social security benefit 800 retirement benefit 1200 gross income 18000 Tax credit for ederly is computed as follows: max base amount 7500 less social security 800 less retirement benefit 1200 1/2 AGI In excess of 13500 4000 6000 balance for credit 1500 credit allowed(750*15%) 225 taxable income b) max base amount 5000 less social security 800 less retirement benefit 1200 1/2 AGI In excess of 13500 4000 6000 balance for credit 0 credit allowed(750*15%) 0 45) 100% for the 1st 2000 4000 25% for the next 2000` 1000 credit 5000 46) Gross income 2,500 salary 110,000 interest on bonds 3,000 48) dividend income 1,000 600 capital gain
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Unformatted text preview: 60,000 total gross income 174,000 58) alex salary 110,000 Itemized deductions interest on bonds 3,000 medical expenses 4,950 dividends 1,000 home mortgage interes 8,000 capital gain 60,000 expenses: deductible taxes 4,000 medical expenses 18,000 charitable contribution 2,000 home mortgage interest 8,000 misc deductions 1,200 consumer interest 5,000 total itemized deductions 20,150 deductible taxes 4,000 personal exemptions 18500 charitable contribution 2,000 misc deductions 1,200 taxable income 135,350 adj to taxable income personal exemptions 18500 medical expenses 4,350 deductible taxes 4,000 misc deductions 1,200 Alternative minimum tax comp total adj to taxable income 28050 163,400 62) c) Chapter 9 Problems 40, 41, 45, 46, 48, 58, 62 Initial Submission Due Nov 8...
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