AC553_W1_Assignment_Solution

AC553_W1_Assignment_Solution - Week 1 Assignment Solution...

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Week 1 Assignment Solution Taxable Income Computation: Married Taxpayers 3-31. Tom and Linda’s taxable income is $13,250. Adjusted gross income $40,000 Less: Itemized deductions v. $11,600 11,950 Less: Personal exemptions (4 × $3,700) 14,800 Taxable income $13,250 Taxable Income Computation: Single Taxpayer 3-32. Marie’s taxable income is $49,900. Adjusted gross income $70,000 Less: Itemized deductions v. $8,500 9,000 Less: Personal exemptions (3 × $3,700) 11,100 Taxable income $49,900 Taxable Income: Standard Deduction—Dependents 3-36. Stanley’s taxable income is $1,700. Adjusted gross income $3,000 Less: Standard deduction (earned income + $300) 1,300 Taxable income $1,700 If Stanley is age 16, $1,600 will be taxed at his marginal rate of 10 percent and $100 (net unearned income ($2,000 − $950 − $950)) will be taxed at his parents’ marginal rate.
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AC553_W1_Assignment_Solution - Week 1 Assignment Solution...

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