4points

Print

References

Question-1A

Chuck, a single taxpayer, earns $78,000 in taxable income and $13,300 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.)

Required:

1. How much federal tax will he owe?
2. What is his average tax rate?
3. What is his effective tax rate?
4. What is his current marginal tax rate

Question-1B

Hugh has the choice between investing in a City of Heflin bond at 7.8 percent or investing in a Surething Incorporated bond at 10.8 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, in which bond should he invest?

Question-1C

amarcus, a full-time student, earned $2,650 this year from a summer job. He had no other income this year and will have zero federal income tax liability this year. His employer withheld $318 of federal income tax from his summer pay. Is Jamarcus required to file a tax return? Should Jamarcus file a tax return?

multiple choice

He is required to file an income tax return regardless of income and should file a tax return.

He is not required to file a tax return as the refund of $318 previously withheld will be automatically credited to his bank account.

He is not required to file an income tax return because his gross income of $2650 is well below the gross income threshold for a single taxpayer ($12950 for 2022). He should still file a tax return to receive a refund of the $318 previously withheld.

He should compulsorily file a tax return because his gross income of $2,650 is well below the gross income threshold for a single taxpayer.

Question-1D

Latoya filed her tax return on February 10 this year. When will the statute of limitations expire for this tax return?

multiple choice

6 years from April 15th

3 years from April 15th

6 years from February 10th

3 years from February 10th

Question-1F

The estate of Monique Chablis earned $850 of income this year. Is the estate required to file an income tax return?

multiple choice

No, because the estate's gross income is less than $600, the estate is not required to file an income tax return.

No, the estate is exempted from filing an income tax return.

Yes, the estate has to file an income tax return irrespective of its income.

Yes, because the estate's gross income is more than $600, the estate is required to file an income tax return.