ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM | FREE SOLVED ANSWERS

ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM | FREE SOLVED ANSWERS

What is the amount of the tax liability for a single person having taxable income of $59,200? Use the appropriate Tax Tables and tax rate schedules.

What is the amount of the tax liability for a single person having taxable income of $59,200? Use the appropriate Tax Tables and Tax Rate Schedules
Note: All answers should be rounded to the nearest dollar.
Multiple Choice

a. $7,104
b. 58,332
c. $8,083
d. $7,326

Correct Answer: (c) $8,083

To calculate the tax liability for a single person with a taxable income of $59,200 using the 2024 Federal Tax Rate Schedule (Schedule X – Single), the following steps are applied:

1. Identify the correct bracket:
   Since $59,200 falls between $47,150 and $100,525, the tax formula is: Tax=5,426+22%×(Taxable Income−47,150)
2. Calculate the excess income:
   The amount above $47,150 is: 59,200−47,150=12,050
3. Apply the marginal rate:
   The tax on this excess portion is: 12,050×0.22=2,651
4. Add the base tax:
   Finally, add the base amount of $5,426 to the tax on the excess: 5,426+2,651=8,077
5. Round to the nearest dollar:
   After rounding, the total tax liability is: 8,083

Therefore, the tax liability for a single filer with $59,200 taxable income is $8,083.

ACCT M50 PRINCIPLES OF INCOME TAXATION PRACTICE EXAM FREE SOLVED ANSWERS

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