16 Jenny is single and has a taxable income of $200,000. She also received $15,000 of tax-exempt income. Jenny's marginal tax ratein this year is: a.33%b.24.9%c.25.0%d.28.0%e.OtherA Learning Objective 5.Children with Unearned Income17The regular standard deduction is available to which one of the following taxpayers? C 18Elise, age 20, is a full-time college student with earned income from wages of $4,400 and interest income of $500. Elise's parents provide more than half of her support. Elise's taxable income is B 19 Frank, age 17, received $4,000 of dividends and $1,500 from a part-time job. Frank is a dependent of his parents who are in the 28% percent bracket. Frank's taxable income is D
grandparents. Satish's marginal rate is 10%, and his parent's marginal rateis 28%. Satish's tax is A) $357.B) $195.C) $546.D) $300.Answer: Explanation: Interest income$3,000 Adjusted gross income$3,000 Minus: Standard deduction ( 1,050Taxable income$1,950 Interest$3,000Statutory Ded.- 1,050Std Ded.- 1,050Net Unearned income$ 900Tax on net unearned income $900 × 28% =$252Tax on taxable income minus net unearned income($1,950 - $900) × 10% =105Total Tax$357Learning Objective 6. Tax planning. A ) 21 A cash basis taxpayer is in the 15% tax bracket in Year 1 and expects to be in the 35% bracket in Year 2. If certain bills are paid in Year 1, a current tax deduction will be allowed for those payments. If customers are billed for services (provided in November) in early December, many of those customers will make their payments before December 31, Year 1. If billing is delayed a couple of weeks, collections will be in January, Year 2. How should the taxpayer manage its Year 1: (1) end-of-year payments of accounts payable and (2) end-of-year billing and collection of accounts receivable?
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- Winter '15
- Progressive Tax, Taxation in the United States