Each year, the Internal Revenue Service adjusts the value of the standard deductions based on inflation (and rounds to the nearest $50). In a recent year, if the exemption was worth $12,000 and inflation was 4.30 percent, what would be the amount of the exemption for the upcoming tax year? (Round your answer to the nearest $50.) Upcoming exemption
Each year, the Internal Revenue Service adjusts the value of the standard deductions based on inflation (and rounds to the nearest $50). In a recent year, if the exemption was worth $12,000 and inflation was 4.30 percent, what would be the amount of the exemption for the upcoming tax year? (Round your answer to the nearest $50.) Upcoming exemption
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter10: Payroll Register (pr)
Section: Chapter Questions
Problem 1R: Based on 2011 tax rates provided, use a calculator to compute how much would be withheld from Joness...
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Formula:
Increase in exemption = Current year exemption x Inflation rate
Multiplying inflation rate with current year exemption called as increase in exemption.
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