Liam has a gross income of $120,000 and takes the standard deduction. 1) What are his total taxes due?2) What is his marginal tax rate?3) What is his effective tax rate? Round to the neared hundredth of a percent. For the following question, assume the characters are single filers and not claimed as a dependent on someone else's tax return.2020 Tax BracketsSingle0 to $9,875Individual Income Tax RatesMarried Filing Jointly10%0 to $19,75012%22%24%32%35%37%Standard Deduction$9,876 to $40,125$40,126 to $85,525$85,526 to $163,300$163,301 to $207,350$207,351 to $518,400$518,401 and up$12,400$19,751 to $80,250$80,251 to $171,050$171,051 to $326,600$326,601 to $414,700$414,701 to $622,050$622,051 and up$24,800

Taxation system Here discuss about the details of the gross income and standard deduction to get the…

Liam has a gross income of $120,000 and takes the standard deduction. 1) What are his total taxes due? 2) What is his marginal tax rate? 3) What is his effective tax rate? Round to the neared hundredth of a percent.

Liam has a gross income of $120,000 and takes the standard deduction. 1) What are his total taxes due? 2) What is his marginal tax rate? 3) What is his effective tax rate? Round to the neared hundredth of a percent.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 67IIP

See similar textbooks

Related questions

Q: Q4 – HW#3 SOLVING THE PROBLEM! Lopez General Services Below are the cash transactions of Lopez Gener...

A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by...

Q: The following information is available for Sheffield Corp.: January 1, 2021 Shares outstandi...

A: Treasury stock: Shares which are bought back by the company from the open market but not retired fro...

Q: Jessie purchased land as an investment on January 12, 2016 for $80,000. On January 31, 2021, Jessie ...

A: Amount of the realized gain or loss on the sale = selling price + Mortgage value -purchase price

Q: 31. The carrying amount of the investment on December 31, 2018 is most approximately equal to

A: Bond is the investment which has been made by the investor by way of purchasing or acquiring the bon...

Q: Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity...

A: Impairment loss 2021 = P100,000

Q: Cheyenne Real Estate Balance Sheet December 31, 2020 Cash $ 25200 Accounts Payable $ 61000 Prepaid I...

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle, whiche...

Q: 've got a quick question for you: I was contacted by a recruiter to take a Director position at a co...

A: Taxes are forced contributions imposed by a agency on individuals or corporations, whether municipal...

Q: . Entity A leases computer equipment to customers under direct-financing leases. The equipment has n...

A: A lease is an arrangement where a lessor agrees to allow a lessee to control the use of the asset fo...

Q: Fred is considering three job offers in advertising. A full-time position as a coordinator that pay...

A: Monthly net income is calculated as gross income minus all the tax deductions.

Q: Peter operates a dental office in his home. The office occupies 250 square feet of his residence, wh...

A: Total expenses for a particular time are the sum of all gross cash expenditures plus any pending sub...

Q: Jasper makes a $36,000, 90-day, 9% cash loan to Clayborn Company. Jasper's entry to record the colle...

A: Calculation of Interest amount at maturity date Loan amount - $36,000 Interest rate - 9% Number of d...

Q: Prepare an income statement for August. Monty Corp. Income Statement For the Month Ended August 31, ...

A: >Income Statement is one of the financial statement. >It shows various revenues and expens...

Q: Problem #1 (Adapted) Jack and Jill are partners who share profit or loss in the ratio of 3:2. They h...

A: Journal entry - It refers to the process where the business transactions are recorded in the books o...

Q: 1.Which of the following is not true about FICA?

A: GIVEN the following is not true about FICA

Q: the allocation base. This period's estimat $500,000 and estimated direct labour he

A: These are the indirect cost that provides support to the direct cost in the manufacturing process of...

Q: Problem 3 - Calculate ending inventory and cost of goods sold Princess Company uses a periodic inven...

A: FIFO Method - Under FIFO Method of Inventory valuation, Inventory purchased 1st are sold first. LIFO...

Q: 4: An employer in Cary, North Carolina, employs three individuals, whose taxable earnings to date (p...

A: Note: We’ll answer the 4 question since the FUTA Tax rate is different for U.S Virgin Islands so kin...

Q: In our opinion, except for the effects of capitalizing lease obligations, as discussed in the follow...

Q: Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an e...

A: Solution: Flexible budget is the budget based on various level of activity to know what will be th...

Q: 10 In July, TPM Co. incurred total costs of $60,000 and made 6000 units. In December it produced 400...

A: Formula: Variable cost per unit = Total variable cost / Number of units produced

Q: Inc manufactures sporting equipment, including weight-lifting gloves. Anationalsporting goods chain ...

A: The main aim of any business is to maximise profit . When there is ...

Q: Selected data from Design Corporation for 2016 is as follows: Inventories Beginning $34,000 135,000 ...

A: Net profit of the business will be calculated after deducting all type of costs and expenses from th...

Q: Employment contracts typically contain all of the following: O Duration O Start date, compensation/b...

A: Employment contract is a contract between employer and employee. It is a written agreement which con...

Q: Julie has just retired. Her company's retirement program has first option, Julie would receive a lum...

A: Present value is computed as follows: = Future value / (1 + r)n Here, r = rate of interest n = time ...

Q: Bonita Industries, has 4230000 shares of common stock outstanding on December 31, 2020. An additiona...

A: Since Bonita issued 19000, $1,000 face value, 8% convertible bonds each will be converted into 20 s...

Q: MNR traders purchased an equipment dated 01/01/2018 for P400,000 Amount spent on erection of the equ...

A: Cost of the equipment= Purchase cost + Erection charges +Freight charges Purchase cost=P400,000 Erec...

Q: Best Appliance Store offers a two-year warranty on all appliances sold. The company estimates that 5...

A: Formula: Sales revenue = Sales units x Sales price per unit

Q: : An employer in Nesconset, New York, employs three individuals, whose taxable earnings to date (pri...

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...

Q: QUESTION 1 A company purchased land for $25,000 cash. What would be the effect of this transaction o...

A: >Accounting equation states that Total Assets = Total Liabilities + Total equity. >This eq...

Q: How to do Question 3

A: Under Activity Based Costing, Overhead Costs are allocated on the products or processes on the basis...

Q: Placid Oil Corporation purchased an offshore lease c total acres. Proved reserves are found on a 1,0...

A: workings : Proved property = proved reserves/ Total Acres x offshore Lease ...

Q: Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity...

A: As per IFRS 5 Assets held for sale shall be valued at lower of carrying value or fair market value l...

Q: Costs assigned to an activity pool for teaching children to swim at the county park are $2,700 per m...

A: In the given question , estimated overhead's is given as $2700. Also, Activity given to 300 student...

Q: Question 6: What is the earnings threshold over which an employee whose filing status is Married Fil...

A: From 2013 onwards Additional medicare tax came into force.

Q: Required 1. Enter the balances as of 11/30/2021 in the general ledger. 2. Prepare journal entries to...

A: Journal Entry The purpose of preparing the Journal entry to enter the required information into segr...

Q: Cost Flow Methods The following three identical units of Item LO3V are purchased during April: I...

A: Gross Profit Ending Inventory a. First-in, first-out (FIFO) $77 $383 b. Last-in, first-out (LI...

Q: FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Accounting Equation Transaction Analysis Prac...

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. As...

Q: The ABC Company manufactures stationary that goes through two processing stages prior to completion....

A: Solution a: Nos of units completed and transferred to next department = Beginning WIP units + Units ...

Q: QUESTION ONE RJD Corporations had the following authorized capital on December 31, 2020: 10,000 shar...

A: Stockholder's Equity - Stockholder's Equity is the statement of the company that contains Common Sto...

Q: ABC Company and XYZ Company reported the following condensed Statements of Financial Position on Jan...

A: Consolidated financial statements means financial statements of overall group where conman have one ...

Q: Juan and Pedro considered dividing profits by making use of salaries and bonuses. Bonuses will be 10...

A: Bonus refers to the amount in addition to the salary allowed to the individual due to the efforts pu...

Q: An employer in Cleveland, Ohio, employs two individuals, whose taxable earnings to date (prior to th...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Question 2: If an individual whose filing status is single earns $256,000 during the year, what port...

Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as foll...

A: Given Oct. 1 Inventory 36 units @ $19 7 Sale 28 units 15 Purchase 39 units @ $20 24 ...

Q: A man wishes his son to receive P200, 000 ten years from now. What amount should he invest if it wi...

A: Here we are given the future value which is P200,000. We have to find the amount to be invested init...

Q: Sonya Jared opened a law offi ce on July 1, 2020, On July 31, the Balance Sheet showed Cash $5,000, ...

A: (a) The statement of tabular analysis of the August transaction Particulars Amount $ Amount $ ...

Q: Please assist with part B. I have completed part A RJD Corporations had the following authorized ca...

A: Here are the step-by-step solutions: 1. Define the shareholders' equity. - is the total amount of m...

Q: You are the new controller for Moonlight Bay Resorts The company CFO has asked you to determine the ...

A: Interest Expenses: It is the cost of borrowed money and amount paid by borrower on the use of borrow...

Q: Sales Less: Cost of goods so Fixed overhead cos Variable production Cost of goods sold Gross margin ...

A: The question is based on the concept of Cost Accounting.

Q: The LL Company will issue shares of P10 par value common stock for all the assets and liabilities of...

A: To calculate the number of shares to be issued by LL, we need to compute the Net asset 1) The stat...

Question

Liam has a gross income of $120,000 and takes the standard deduction.

1) What are his total taxes due?

2) What is his marginal tax rate?

3) What is his effective tax rate? Round to the neared hundredth of a percent.

For the following question, assume the characters are single filers and not claimed as a dependent on someone else's tax return.
2020 Tax Brackets
Single
0 to $9,875
Individual Income Tax Rates
Married Filing Jointly
10%
0 to $19,750
12%
22%
24%
32%
35%
37%
Standard Deduction
$9,876 to $40,125
$40,126 to $85,525
$85,526 to $163,300
$163,301 to $207,350
$207,351 to $518,400
$518,401 and up
$12,400
$19,751 to $80,250
$80,251 to $171,050
$171,051 to $326,600
$326,601 to $414,700
$414,701 to $622,050
$622,051 and up
$24,800

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?
Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
Calculating marginal tax rates. Lacey Hansen is single and received the items and amounts of income shown below during 2018, as shown below. Determine the marginal tax rate applicable to each item. Note that if the item is not taxable, the marginal rate is 0.
Renee and Sanjeev Patel, who are married, reported taxable income of 1,008,000 for 2019. They incurred positive AMT adjustments of 75,000 and tax preference items of 67,500. The couple itemizes their deductions. a. Compute the Patels AMTI for 2019. b. Compute their tentative minimum tax for 2019.
B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31,2019, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1,2020; the interest is not paid until 2021 . How much can B Corporation deduct on its 2019 tax return for these two expenses? $0 $4,000 $15,000 $19,000 $12,000