Ask Question, Ask an Expert


Ask Basic Finance Expert

1) Many years have gone by since Jack and Belinda graduated from college and began their working careers. They both make good salaries. They consider that they are paying too much in federal income taxes. Johnsons’ total income last year included Jack’s salary of= $63,000 and Belinda’s salary of= $84,000. She donated= $3000 to her 401(k) for retirement. She earned $400 in interest on savings and checking and $3000 interest income from trust that is taxed in similar way as interest income from checking and savings accounts. Jack donated $3000 into a traditional IRA.

a) Determine the Johnsons’ reportable gross income on their joint tax return?
b) Compute their adjusted gross income?
c) Determine the total value of their exemptions?
d) How much is = standard deduction for Johnsons?
e) Johnsons are purchasing a home which has monthly mortgage payments of $3000, or $36,000 a year. Of this amount, $32,800 goes for interest and real estate property taxes. Couple has an additional $14,000 in itemized deductions. Compute their taxable income and tax liability.
f) Suppose they had combined $18,000 in federal income taxes withheld, how much of refund will Johnsons get?
g) Determine their marginal tax rate.
h) Compute their average tax rate based on gross income
i) Name 3 extra methods that Johnsons might decreas their tax liability next year.

Min Pages: 1

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915355

Have any Question? 

Related Questions in Basic Finance

What is the price of a consol with a coupon payment of 200

What is the price of a consol with a coupon payment of $200 per year if the interest rate is 10 percent? What is the interest rate on a consol if the coupon payment is $400 and the price of the consol is $8,000?

Vriend software incs book value per share is 1300 earnings

Vriend Software Inc.'s book value per share is $13.00. Earnings per share is $1.60, and the firm's stock trades in the stock market at 2.5 times book value per share. What will the P/E ratio be? (Do not round intermediat ...

Bankers acceptances explain how each of the following would

Banker's Acceptances: Explain how each of the following would use banker's acceptances: (a) exporting firms, (b) importing firms, (c) commercial banks, and (d) investors.

Recreational supplies co has net sales of 12430000 an roe

Recreational Supplies Co. has net sales of $12,430,000, an ROE of 17.00 percent, and a total asset turnover of 2.44 times. If the firm has a debt-to-equity ratio of 1.25, what is the company's net income? (round intermed ...

Discuss the contention that differences in the performance

Discuss the contention that differences in the performance of various firms within an industry limit the usefulness of industry analysis.

Finance and budgeting questionsq1 the following chart shows

Finance and Budgeting Questions Q1. The following chart shows revenue and cost figures for a product development effort over a five year period of time. In what year does payback occur? Year Cost Revenue 1 $30k $0 2 $20k ...

Define par face value coupon rate coupon payment and

Define par ( face) value, coupon rate, coupon payment, and current yield. What are call provisions and convertible provisions, and how do they affect the interest rates on newly issued securities?

In a crime at unc chapel hill it is determined that the

In a crime at UNC Chapel Hill, it is determined that the perpetrator is a student who was wearing Duke sweatpants and a UNC sweatshirt. A student is arrested who was wearing both of these items of clothing on the evening ...

Analyzing capital expendituresassume that you have received

Analyzing Capital Expenditures Assume that you have received a capital expenditure request for $52,000 for plant equipment and that you are required to do a justification analysis using capital budgeting techniques. The ...

The united states exports a substantial amount of scrap

The United States exports a substantial amount of scrap iron and steel to Turkey, China, Canada, and other countries. Why do some U.S. users of scrap iron and steel support a prohibition on these exports?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate