T11F-Chp-00-Tst-1-Exm-Sol-Fall-2011-Post

T11F-Chp-00-Tst-1-Exm-Sol-Fall-2011-Post - Chapter 1 No Ans...

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Chapter 1 cc02d8ccec3ffce42e66c6c6990fc0304446f5c6.xls Page 1 of 4 No. Ans. Explanation Test No. 1. Fall, 2011 1 B Information for Jan who is single Salary $250,000 Exemptions and itemized deductions $30,000 Taxable Income $220,000 Tax Computations: Jan, Single, 2011 Base Rate Tax First layer for this taxpayer 174,400 42,449.00 Top layer for this taxpayer 45,600 33% 15,048.00 Total 220,000 57,497.00 2 D What is marginal tax rate in preceding question 3 C Limit for OASDI (6.2% tax)-2011 $106,800 Amount Subject to both taxes $106,800 7.65% $8,170 Additional Amt Subject to Medicare tax 143,200 1.45% 2,076 Total Tax $250,000 6.20% $10,247 15,500 4 B Amount of Bonus $15,000 $15,000 1.45% 7.65% Social Securiy withheld $217.50 $1,147.50 5 C Sue-2011 Single Gross income $100,000 Deductions for Adjusted Gross Income Adjusted Gross Income $100,000 Exemption $3,700 Itemized Deductions or Standard Deduction $12,000 Total Deductions $15,700 $(15,700) Taxable Income $84,300 Tax Computations: Sue, Single, 2010 Base Rate Tax Top layer for taxpayer 83,600 17,025 Amount above layer 700 28% 196 Total 84,300 17,221 17,221 Average tax rate (Income tax divided by taxable income) 20.428% 6 D Which item is deductible to get AGI? Real estate taxes on rental house owned by an investor
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Chapter 2 cc02d8ccec3ffce42e66c6c6990fc0304446f5c6.xls Page 2 of 4 No. Ans.
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