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Lacy is a single taxpayer. In 2015, her taxable income is $50,000. What is her t

ID: 2418306 • Letter: L

Question

Lacy is a single taxpayer. In 2015, her taxable income is $50,000. What is her tax liability in each of the following alternative situations? Use Tax rate schedule for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

All of her income is salary from her employer.

Tax Liability ____________________?
        

Her $50,000 of taxable income includes $2,400 of qualified dividends.

Tax Liability ____________________?
        

Her $50,000 of taxable income includes $18,100 of qualified dividends.

Tax Liability ____________________?
       

Lacy is a single taxpayer. In 2015, her taxable income is $50,000. What is her tax liability in each of the following alternative situations? Use Tax rate schedule for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Explanation / Answer

Answer:a

Answer:b Her $50,000 of taxable income includes $2,400 of qualified dividends.

Answer:c Her $50,000 of taxable income includes $18,100 of qualified dividends.

Description Amount ($) Explanation (1) Taxable income 50000 (2) Preferentially taxed income 0 (3) Income taxed at ordinary rates 50000 (1)-(2) (4) Tax on income taxed at ordinary rates 8293.75 (50000-37450)*25%+5156.25 (see tax rate schedule for Single individuals) (5) Tax on preferentially taxed income 0 Tax on taxable income 8293.75 (4)+(5)