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Problem 1-11 The Tax Formula for Individuals, Filing Status and Tax Computation,

ID: 2333533 • Letter: P

Question

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 joint income tax return for 2017. Their salaries for the year total $84,600 and they have taxable interest income of $3,900. They have no deductions for adjusted gross income. Their itemized deductions are $12,800. Frank and Joyce do not have any dependents.

Table for the standard deduction

a. What is the amount of their adjusted gross income?
$

b. What is their deduction for personal exemptions?
$

c. What is the amount of their taxable income?
$

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

Explanation / Answer

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:-

(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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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
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