ACCT 330 – Chapter 3 Team Application - Solution
1) Robbie is a 20 year old dependent who is a full time student.
Robbie has $6,800 in income from
wages and $6,000 of interest income from bonds inherited from his grandmother.
What is the amount of Robbie's Taxable Income?

2) Robbie is a 20 year old dependent who is a full time student.
Robbie has $6,800 in income from
wages and $6,000 of interest income from bonds inherited from his grandmother.
What is the amount of Robbie's Computed Tax Liability before consideration of tax credits or payment?

Now, we have to get the tax on the net taxable unearned income (Kiddie Tax).
Net taxable unearned at Estate Trust Schedule
$260 + .24 x (3800-2600)
548
The total tax liability is the sum of these = 733
3) Caroline is an unmarried single mother of a 14 year old son in 2020. Caroline's spouse and the son's
father, Frank, died during 2018. Caroline's Adjusted Gross Income for 2020 is 54,000. Caroline's
itemized deductions are $10,000. What is Caroline's computed
Income Tax Liability
for 2020 BEFORE
CONSIDERING ANY TAX CREDITS?

4) Rachel and Joseph file a married joint return.
Joseph is 82 years old and blind.
Rachel is 78 years old.