Sophia Johnson is 24 years old and single, lives in an apartment, and has no dependents....

Free

80.2K

Verified Solution

Question

Finance

Sophia Johnson is 24 years old and single, lives in anapartment, and has no dependents. Last year she earned $41,100 as asales assistant for Office Furniture Rentals, $3,288 of her wageswere withheld for federal income taxes. In addition, she hadinterest income of $179.
The standard deduction in 2014 was $6,200 for single. Theexemption was claimed to be worth $3,950. The appropriate tax rateschedule is shown below:
EXHIBIT 3.3    Sample TaxRate Schedules
Tax rates levied on personal income vary with the amount ofreported taxable income and the taxpayer's filing status.
2014 Tax Rate Schedules
Schedule X-If your filing status isSingle
If your taxable
income is: The tax is:

Over-
But not
over- of the
amount
over-
0 $9,075 _ _ _ _ _10% $0
9,075 36,900 $907.50 + 15% 9,075
36,900 89,350 5,081.25 + 25% 36,900
89,350 186,350 18,193.75 + 28% 89,350
186,350 405,100 45,353.75 + 33% 186,350
405,100 406,750 117,541.25 + 35% 405,100
406,750 _ _ _ _ _ 118,118.75 + 39.6% 406,750
a. Calculate her taxable income.
$
b. Calculate her tax liability. Round the answer to the nearestcent. Use unrounded values in later calculations. (Hint:Use the tax rate schedules given in Exhibit 3.3 to determine hertax liability.)
$
c. Calculate her tax refund or tax owed. Enter tax owed, if any,as negative amount. Round the answer to the nearest cent.
$
Feedback

Answer & Explanation Solved by verified expert

4.0 Ratings (668 Votes)

a) Computation of Taxable Income
Particular	Amount in $
sales assistant for Office Furniture Rentals	41,100.00
Interest Income	179.00
Less:- Standard Deduction	6,200.00
Less:- Exemption	3,950.00
Taxable Income	31,129.00

b) Computation of Tax Liability
Particular	Amount in $
First $ 9075	-
Next $ 9075 to $ 31129 = $ 907.5 + 15%	4,215.60
Total Tax liability	4,215.60

c) Computation of Tax Liability payable / (refund Due)
Particular	Amount in $
Total Tax liability	4,215.60
Less:- Federal Income Tax withheld	3,288.00
Tax Owed	927.60

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Sophia Johnson is 24 years old and single, lives in anapartment, and has no dependents. Last year she earned $41,100 as asales assistant for Office Furniture Rentals, $3,288 of her wageswere withheld for federal income taxes. In addition, she hadinterest income of $179.The standard deduction in 2014 was $6,200 for single. Theexemption was claimed to be worth $3,950. The appropriate tax rateschedule is shown below:EXHIBIT 3.3 Sample TaxRate SchedulesTax rates levied on personal income vary with the amount ofreported taxable income and the taxpayer's filing status.2014 Tax Rate SchedulesSchedule X-If your filing status isSingleIf your taxableincome is:The tax is:Over-But notover-of theamountover-0$9,075_ _ _ _ _10%$09,07536,900$907.50 + 15%9,07536,90089,3505,081.25 + 25%36,90089,350186,35018,193.75 + 28%89,350186,350405,10045,353.75 + 33%186,350405,100406,750117,541.25 + 35%405,100406,750_ _ _ _ _118,118.75 + 39.6%406,750a. Calculate her taxable income.$ b. Calculate her tax liability. Round the answer to the nearestcent. Use unrounded values in later calculations. (Hint:Use the tax rate schedules given in Exhibit 3.3 to determine hertax liability.)$ c. Calculate her tax refund or tax owed. Enter tax owed, if any,as negative amount. Round the answer to the nearest cent.$ Feedback