BMGT323 - chapter 11 HW - 5

Ron and annes ordinary inc ome will inc reas e from

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Unformatted text preview: n part a. Ron and Anne’s ordinary inc ome will inc reas e from $400,000 to $401,000 due to their $1,000 net s hort-term c apital gain. Ron and Anne’s gros s tax liability of $151,836 is c omputed as follows : Amount and Ty pe of Inc ome Applic able Rate ezto.mhecloud.mcg r aw- .tpx?todo= pr intviewSing le Tax Ex planation 3/4 11/13/13 Assig nment Pr int View Ty pe of Inc ome $17,850; ordinary Rate 10% $54,650; ordinary 15% $73,900; ordinary 25% $76,650; ordinary 28% $175,300 33% $2,650; ordinary 35% $3,000; 28% rate c apital gains $30,000; 25% rate c apital gains $16,000; 0/15/20% rate c apital gains 28% Tax Ex planation $ 1,785 $17,850 × 10% The firs t $17,850 of Ron and Anne’s $401,000 of ordinary inc ome is tax ed at 10% (s ee MFJ tax rate s c hedule for this and other c omputations )....
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This homework help was uploaded on 03/19/2014 for the course BMGT 323 taught by Professor Pfeiffer during the Fall '08 term at Maryland.

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