Rachel and harry are planning to get married both have, Ask an Expert

Finance

Rachel and Harry are planning to get married. Both have successful careers and expect to earn the following this year.

Rachel Harry

Salary	$155,380	$146,200
Interest income (taxable)	6,750	45,325
Long-term capital gain/(loss)	5,798	-
Total income	$167,928	$191,525
Itemized deductions	$28,763	$ 15,271

a. Use the PERSTAX program to calculate their total tax bill as single individuals and determine how much it will cost them in taxes to get married. Assume that getting married during a year subjects the entire year's income to the married filing jointly rate schedule. Assume there are no state taxes.

b. Duncan and Angela are also considering getting married but have considerably lower incomes as follows.

	Duncan	Angela
Salary	$56,450	$37,829
Itemized deductions	6,048	3,224

What will it cost them to get married?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91726923

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Please show the steps to work out this problem along with

Please show the steps to work out this problem along with the answer. Thank you. What is the accumulated sum of the following stream of payments? $2,747 every year at the end of the year for 4 years at 5.01 percent, comp ...

Ultra petroleum has earnings per share of 156 and a pe

Ultra Petroleum has earnings per share of $1.56 and a P/E ratio of $32.48. What is the stock price?

Net income is 300 million depreciation is 70 million

Net income is 300 million, depreciation is 70 million, capital expenditures are 120 million, investment in working capital is 30 million, interest expenses (before tax) are 40 million, and outstanding debt is 850 million ...

Question - bridgestone a japanese-based company receives

Question - Bridgestone, a Japanese-based company, receives recurring income in USD of about USD 5 billion per year. The current exchange rate is ¥120/USD. The annualized exchange rate volatility is 10%. The interest rate ...

Cathy buys a house her principal residence for 2500000

Cathy buys a house (her principal residence) for $2,500,000, paying $500,000 down and borrowing the other $2,000,000 at 5% interest. If her interest expense for the year is $100,000, how much will her maximum deduction f ...

Imagine you are the chief adviser to the australian prime

Imagine you are the Chief adviser to the Australian Prime Minister. 1) Clearly explain to him the meaning of 'subprime debt'? What are the risks and advantages of such financial instruments? a) What is a CDO? b) What is ...

Prokter and gamble pg has historically maintained a

Prokter and Gamble (PG) has historically maintained a debt-to-equity ratio (D/E) of approximately 0.3. Its cost of equity is 7.5% and it can borrow at 4.3%. PG's tax rate is 40%. PG believes it can increase debt without ...

Question - the stock of the faraway travel co is selling

Question - The stock of the Faraway Travel Co. is selling for $28 a share. You put in a limit buy order at $24 for one month. During the month the stock price declines to $20, then jumps to $36. Ignoring commissions, wha ...

Your company is considering a new project that will require

Your Company is considering a new project that will require $950,000 of new equipment at the start of the project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of $297,500 ...

Youve finally decided to retire at the ripe old age of 50

You've finally decided to retire at the ripe old age of 50, and due to some fancy investing, you have accumulated $750,000 in mutual funds. Based upon genetics, you're likely to live until you're 80. Since you've taken t ...

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

Recent Questions

Ask Basic Finance Expert