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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