4. Sally is a single and has the following situation for the year: Sally's income of $120,000; dividend income of $2,000; interest income of $3,000; short-term capital gain of $7800 and long term capital gain of 10,000. S aid $8,800 on interest charges on her credit card. Her other total exemptions and itemized deductions is 18,000; these amounts will be deducted from her gross income to determine her taxable income. If she is files as ndividual, what is Sally's tax liability for the year, i.e. how much in taxes she will pay for the year? Use the individual tax rate provided below. ingle Individual Tax table ax on Base axable Income Up to $6,000 -6,000-$27,950 27,950-$67,700 67,700-S141,250 141,250-$307,050 Over $307,050 . $31,755 ■. 30,255 28,755 1. 27,615 None of the above Percentage on of Bracket $0.00 600.00 3,892.50 14,625.00 36,690.00 94,720.00 Excess above Base 10.0% 15.0 27.0 30.0 35.0 38.6
4. Sally is a single and has the following situation for the year: Sally's income of $120,000; dividend income of $2,000; interest income of $3,000; short-term capital gain of $7800 and long term capital gain of 10,000. S aid $8,800 on interest charges on her credit card. Her other total exemptions and itemized deductions is 18,000; these amounts will be deducted from her gross income to determine her taxable income. If she is files as ndividual, what is Sally's tax liability for the year, i.e. how much in taxes she will pay for the year? Use the individual tax rate provided below. ingle Individual Tax table ax on Base axable Income Up to $6,000 -6,000-$27,950 27,950-$67,700 67,700-S141,250 141,250-$307,050 Over $307,050 . $31,755 ■. 30,255 28,755 1. 27,615 None of the above Percentage on of Bracket $0.00 600.00 3,892.50 14,625.00 36,690.00 94,720.00 Excess above Base 10.0% 15.0 27.0 30.0 35.0 38.6
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 64P: Leroy and Amanda are married and have three dependent children. During the current year, they have...
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Transcribed Image Text:14. Sally is a single and has the following situation for the year: Sally's income of $120,000; dividend income of $2,000; interest income of $3,000; short-term capital gain of $7800 and long term capital gain of 10,000. She also
paid $8,800 on interest charges on her credit card. Her other total exemptions and itemized deductions is 18,000; these amounts will be deducted from her gross income to determine her taxable income. If she is files as a single
individual, what is Sally's tax liability for the year, i.e. how much in taxes she will pay for the year? Use the individual tax rate provided below.
Single Individual Tax table
Tax on Base
Taxable Income
Up to $6,000
$6,000-$27.950
$27,950-S67,700
$67,700-S141,250
$141,250-$307,050
Over $307,050
a. $31,755
b. 30,255
c. 28,755
d. 27,615
e. None of the above
Percentage on
of Bracket
$0.00
600.00
3,892.50
14.625.00
36,690.00
94,720.00
Excess above Base
10.0%
15.0
27.0
30.0
35.0
38.6
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