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Ability-to-Pay Concept (LO. 2) Sheila, a single taxpayer, is a retired computer executive with a taxable income of $121,000 i
Income Concepts (LO. 4) Chelsea, who is single, purchases land for investment purposes in 2014 at a cost of $22,300. In 2019,
Table B-1 Single Taxpayers If Taxable income Is Over 9,701 39,476 84,201 160,726 204,101 510,301 But Not Over 9,700 39,475 84
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As per the HOMEWORKLIB POLICY, only the first question should be answered completely. kindly take note of it. Each new question should be posted differently.

Sheila's tax is $23,214. Adam and Tanya's tax is $18,337.

Sheila’s tax liability = 14382+(24%*(121000-84200)) = $23214 (using single tax rate schedule)

Adam and Tanya’s tax liability = 9086+(22%*(121000-78950))= $18337 (using married filing jointly tax rate schedule)

The difference in the tax rate schedules for single and married taxpayers reflects the greater ability to pay tax by single taxpayers at the same income level as married taxpayers. The tax rate structures do reflect the ability-to-pay concept,

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