PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337117005
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Question
Chapter 3, Problem 6FPE
a.
Summary Introduction
To determine: The tax return of person MH for the year 2015.
A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.
a.
Expert Solution
Explanation of Solution
Determine the taxable income
Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.
Therefore the taxable income is $25,985.
Determine the tax liability
Therefore the taxable liability is $3,436.50.
Determine the tax due
Therefore the taxable due is $836.50.
b.
Summary Introduction
To determine: The tax return of person MH for the year 2015 with additional information provided.
b.
Expert Solution
Explanation of Solution
Determine the revised adjusted gross income
Therefore the revised adjusted gross income is $27,435.
Determine the revised taxable income
Therefore the revised taxable income is $21,135.
Determine the ordinary taxable income
Therefore the ordinary taxable income is $20,985.
Determine the taxes on ordinary taxable income
Therefore the taxes on ordinary taxable income is $2,686.50.
Determine the tax liability
Therefore the taxable liability is $2,709.
Determine the tax due
Therefore the taxable due is $109.
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Students have asked these similar questions
Janet is getting ready to do her taxes. She is single and lives in Denver. Janet earned $110,000 in taxable income in 2015. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2015.
On Annual Taxable Income...
The Tax Rate Is...
(Percent)
Up to $9,225
10.0
From $9,225 to $37,450
15.0
From $37,450 to $90,750
25.0
From $90,750 to $189,300
28.0
From $189,300 to $411,500
33.0
From $411,500 to $413,200
35.0
Over $413,200
39.6
Based on the IRS table, Janet calculates that her marginal tax rate is when her annual taxable income is $110,000.
Janet calculates that she owes in income taxes for 2015.
Janet then calculates that her average tax rate is , based on the annual income level and the amount of taxes she owes for 2015.
After figuring out what she owes in taxes in 2015, Janet decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter…
Use the 2016 marginal tax rates to compute the tax owed by the following person.
A married man filing separately with a taxable income of $160,000.
i Click the icon to view the 2016 marginal tax rates.
The tax owed is $.
(Type an integer or a decimal. Round to the nearest cent as needed.)
Mr. Sia is working as a freelance professional in SDN Corporation. He is earning professional fees amounting to Php60,000.00 per month and is a Non-VAT registered.
a. During the filing of his First Quarter Income Tax Return, which method of computing income tax is more advantageous? Justify your answer.
b. During the filing of his Annual Income Tax Return, which method of computing income tax is more advantageous? Justify your answer.
Chapter 3 Solutions
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
Ch. 3 - Discuss the basic principles of income taxes and...Ch. 3 - Prob. 2LOCh. 3 - Prob. 3LOCh. 3 - Explain who needs to pay estimated taxes, when to...Ch. 3 - Know where to get help with your taxes and how...Ch. 3 - Implement an effective tax planning strategy.Ch. 3 - Calculating marginal tax rates. Piper Wells is...Ch. 3 - ESTIMATING TAXABLE INCOME, TAX LIABILITY, AND...Ch. 3 - Prob. 3FPECh. 3 - Prob. 4FPE
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