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1) Frank had income of $105,000 during 2016 and is single, given the following m

ID: 2802292 • Letter: 1

Question

1) Frank had income of $105,000 during 2016 and is single, given the following marginal tax rates, how much federal tax will she owe (these are not the actual rates)? Below $10,000 she owes nothing $10,000 $25,000 $25,001 $50,000 $50,001 $100,000 Over $100,000 0% 10% 20% 25% 30% 2) Cameron has $17,000 in monctary assets and $4,000 in current liabilities. What is his current ratio? A) 17,000/4,000 B) ,535 times C) 5 times D) 13,000/4,000 (Answer number 3 and 4 from following information) Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements. Savings account: $1,200 Checking account: $800 Credit card balance: $1,000 Car loan balance: $12,000 Car market value: $8,000 Furniture; market value: $2,000 Stocks and bonds: $10,000 3) What is their current net worth? A) $13,000 B) $22,000 C) $9,000 D) $35,000 E) S(13,000)

Explanation / Answer

Slab

Income

%

Tax

Below 10000

10000

0

0

10000 - 25000

15000

0.1

1500

25000 - 50000

25000

0.2

5000

50000 - 100000

50000

0.25

12500

Over 100000

5000

0.3

1500

Total

20500

Total tax = 20500

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Current ratio = Current asset/Current liability

                         = 17000/4000

Correct answer is A

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Hope that helps.

Feel free to comment if need further assistance J

Slab

Income

%

Tax

Below 10000

10000

0

0

10000 - 25000

15000

0.1

1500

25000 - 50000

25000

0.2

5000

50000 - 100000

50000

0.25

12500

Over 100000

5000

0.3

1500

Total

20500