Concept explainers
Bob Paris is the promotions director for Power 105, a local radio station. He is single and claims two exemptions. Last year Bob earned a salary of $2,450 per month from the station and received a $3,500 Christmas bonus. In addition, he earned royalties of $3,250 from a song he wrote, which was recorded and made popular by a famous musical group. Bob’s itemized deductions amounted to $1,850, and he is entitled to a tax credit of $1,765. If the radio station withheld $325 per month for income tax, what is Bob’s:
a. Adjusted gross income?
b. Taxable income?
c. Tax liability?
d. Is Bob entitled to a refund, or does he owe additional taxes? How much?
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Bundle: Contemporary Mathematics For Business & Consumers, Loose-leaf Version, 8th + Cengagenow, 1 Term (6 Months) Printed Access Card
- Elementary AlgebraAlgebraISBN:9780998625713Author:Lynn Marecek, MaryAnne Anthony-SmithPublisher:OpenStax - Rice University