Author Question: Rates for a head-of-household taxpayer are 10 of taxable income up to 11,950 and 15 thereafter up to ... (Read 120 times)

krzymel · **on:** Jun 24, 2018

Rates for a head-of-household taxpayer are 10 of taxable income up to 11,950 and 15 thereafter up to 45,550 . Earlene Brown, head of household, earned 41,700 . She itemized the following deductions: 6,600 interest on her house, 2,100 state tax, and a donation of 575 to her church. She took exemptions of 3,650 each for herself and her daughter. Compute the amount of income tax before credits.

Question 2

Susan Phillips made two 1200 deposits every year (i.e., semiannual) for 10 years. If the investment pays a return of 6 compounded semiannually, how much interest would Susan's investment earn during the 10 years? Use Tables 23-1A and 23-1B or a calculator.

katieost · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

3,171.25

Answer to Question 2

1,200 26.87037 = 32,244.44; 1,200 20 = 24,000;
32,244.44 24,00 . = 8,244.44 interest earned