Problem 1-11 The Tax Formula for Individuals, Filing Status and Tax Computation, Personal and Dependency Exemptions, The...

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Accounting

Problem 1-11
The Tax Formula for Individuals, Filing Status and Tax Computation,Personal and Dependency Exemptions, The Standard Deduction (LO 1.3,1.5, 1.6, 1.7)
Frank, age 35, and Joyce, age 34, are married and file a jointincome tax return for 2017. Their salaries for the year total$84,600 and they have taxable interest income of $3,900. They haveno deductions for adjusted gross income. Their itemized deductionsare $12,800. Frank and Joyce do not have any dependents.
Table for the standard deduction
Filing Status 2017 Standard Deduction
Single $ 6,350
Married, filing jointly 12,700
Married, filing separately 6,350
Head of household 9,350
Qualifying widow(er) 12,700
a. What is the amount of their adjusted grossincome?
$
b. What is their deduction for personalexemptions?
$
c. What is the amount of their taxableincome?
$

Answer & Explanation Solved by verified expert

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SOLUTION:-

Given Data:-

Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2017

Total=$84,600

Interest Income =$3,900

Deductions =$12,800

Table for the standard deduction:-

Filing Status	2017 Standard Deduction
Single	$ 6,350
Married, filing jointly	12,700
Married, filing separately	6,350
Head of household	9,350
Qualifying widow(er)	12,700

Account details	Amount ($)
Salaries	$84600
(+) Taxable interest	$ 3900
Gross income	$88500
( -) Itemized deductions	$12800
Total income	$75700
(-) Standard deductions	$12700
Taxable income	$63000

(a) What is the amount of their adjusted gross income=$88500

(b)What is their deduction for personal exemptions=$13000

(c) What is the amount of their taxable income =$63000

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Problem 1-11The Tax Formula for Individuals, Filing Status and Tax Computation,Personal and Dependency Exemptions, The Standard Deduction (LO 1.3,1.5, 1.6, 1.7)Frank, age 35, and Joyce, age 34, are married and file a jointincome tax return for 2017. Their salaries for the year total$84,600 and they have taxable interest income of $3,900. They haveno deductions for adjusted gross income. Their itemized deductionsare $12,800. Frank and Joyce do not have any dependents.Table for the standard deductionFiling Status2017 Standard DeductionSingle$ 6,350Married, filing jointly12,700Married, filing separately6,350Head of household9,350Qualifying widow(er)12,700a. What is the amount of their adjusted grossincome?$b. What is their deduction for personalexemptions?$c. What is the amount of their taxableincome?$