The Stevenson family tells you the following regarding theirfinancial situation for 2017: Their salary is$99,000. They...The...

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Accounting

The Stevenson family tells you the following regarding theirfinancial situation for 2017:  Their salary is$99,000.  They paid real estate taxes of $6,000 andinterest on their mortgage of $8,000.  They earnedinterest from $1,000 from a savings account and $2,800 from aCortland City water system upgrade bond. They paid $2,000 tovarious charities.  Lastly they made $1,000 on the saleof Ford stock they has owned for 5 months. They also made $6,000 ona piece of real estate they has owned for 8years.   The couple has one child. Exemptions are$3,800 each.
1. What is the family's total taxable income?
A. $73,600
B. $74,200
C. $80,000
D. $76,600
E. $76,200
2. What is the family's total tax liability given the bracketsbelow:
Bracket                                                     Rate
0-$20,000                                                   15%
$20,000.01-$60,000                                    20%
$60,00.01-$120,000                                    25%
over$120,000.01                                         30%
A. $15,400
B. $14,850
C. $14,750
D. $14,400
E. $15,100

Answer & Explanation Solved by verified expert

4.3 Ratings (559 Votes)

Formula sheetABCDEFGHIJ23Cortland city bond is tax exempted and hence itshould not be considered for tax purposes4Gain on sales of real estate upto 250000 can beexluded for ownership more than 2 See Answer

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In: AccountingThe Stevenson family tells you the following regarding theirfinancial situation for 2017: Their salary is$99,000. They...The Stevenson family tells you the following regarding theirfinancial situation for 2017: Their salary is$99,000. They paid real estate taxes of $6,000 andinterest on their mortgage of $8,000. They earnedinterest from $1,000 from a savings account and $2,800 from aCortland City water system upgrade bond. They paid $2,000 tovarious charities. Lastly they made $1,000 on the saleof Ford stock they has owned for 5 months. They also made $6,000 ona piece of real estate they has owned for 8years. The couple has one child. Exemptions are$3,800 each.1. What is the family's total taxable income?A. $73,600B. $74,200C. $80,000D. $76,600E. $76,2002. What is the family's total tax liability given the bracketsbelow:Bracket Rate0-$20,000 15%$20,000.01-$60,000 20%$60,00.01-$120,000 25%over$120,000.01 30%A. $15,400B. $14,850C. $14,750D. $14,400E. $15,100