Homework Supplement 6 - *For the following problems use the 2009 tax rates in Table 4.9 from the text(or on the Financial Formula sheet for any ordinary
Homework Supplement 6 - *For the following problems use the...
**For the following problems, use the 2009 tax rates in Table 4.9 from the text (or on the Financial Formula sheet) for any ordinary income. For dividends and capital gains use the special rates found in the text. For FICA tax, use the special rates also found in the text.1.Wayne earned $110,000 in wages working for an engineering firm for the tax year 2009. Susan earned $110,000 by buying and selling stocks and real estate as long-term capital gains. Assume both individuals are single and taking the standard deduction. Calculate the total tax owed by both individuals including both FICA and income taxes and summarize in the table below. (Hint: read the details on FICA in text.) (1 point per blank)2.Assume that Michael is single and for the tax year 2009 he earned $64,000 in salary and $925 in savings interest. He invested $1,500 for his regular IRA retirement savings. His W-2 form shows that he paid $10,440 in federal income tax. Using the table of marginal rates (Table 4.9) and the applicable information from your text, fill in the following blanks.