Personal tax and corporate tax to be paid by person X.

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Answer 1

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Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

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For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA and income tax. Assume that the individual is single and takes the standard deduction. A womanearned a salary of $27,000 and received $1000 in interest. Tax Rate Single 10% up to $9325 15% up to $37,950 25% up to $91,900 28% up to $191,650 33% up to $416,700 35% up to $418,400 39.6% above $418,400 Standard deduction $6350 Exemption (per person) $4050 Let FICA tax rates be 7.65%on the first $127,200 of income from wages, and 1.45% on any income from wages in excess of $127,200. Her income tax is $_____.

Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: Taxable income Up to $47,630 On the next $47,629 On the next $52,408 On the next $62,704 Over $210,371 Select one: Tax Rate 15% 20.5% Based on the above, the average tax rate (ATR) is closest to: a. 19.15% b. 19,45% c. 20.5% d. 26.0% 26% 29% 33%

Given the following tax structure: Taxpayer Mae Pedro Salary $ 21,500 $ 46,000 Required: a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? Note: Round your final answer to nearest whole dollar amount. b. This would result in what type of tax rate structure? Required A Complete this question by entering your answers in the tabs below. Total tax $ 1,032 ??? Required B Minimum tax What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? Note: Round your final answer to nearest whole dollar amount.

Answer 2

Question

Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

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Answer 3

Question

Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

Answer 6

Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

Answer 7

Chapter 3, Problem 29QP

a)

Summary Introduction

To determine: Personal tax and corporate tax to be paid by person X.

Answer 8

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

Answer 9

b)

Summary Introduction

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

Answer 10

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

Answer 11

c)

Summary Introduction

To determine: Best allocation of minimizing the total tax bill.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Personal tax and corporate tax to be paid by person X.

Solution Summary: The author calculates the amount of taxes to be reduced if person X cut down his salary to 50,000 and firm's profit is 50,000.

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To determine: Personal tax and corporate tax to be paid by person X.

To determine: Amount of taxes to be reduced if person X cut down his salary to $50,000 and firm’s profit is $50,000

To determine: Best allocation of minimizing the total tax bill.

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