Question

Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2013, she earned wages of $101,000. She doesn't itemize deductions, so she will take the standard deduction and her personal exemption to calculate 2013 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $5,800. How much does Jenna owe to the IRS for taxes? Round your intermediated and final answers to the nearest cent.

Andrews Corporation has income from operations of $252,000. In addition, it received interest income of $25,200 and received dividend income of $32,100 from another corporation. Finally, it paid $10,100 of interest income to its bondholders and paid $41,200 of dividends to its common stockholders. Using the 2013 corporate tax schedule, what is the firm’s federal income tax? Round your intermediated and final answers to the nearest cent.

Answer 1

As per the policy, since there are more than one question, I am answering the first one.

2013 Standard Deduction = $6,100

2013 Personal Exemption = $3,900

Wages = $101,000

Long term capital gain taxable at special rate of 15% = $5,800

Taxable Income = $101,000 + $5,800 - $6,100 - $3,900 = $96,800

Taxable at normal rate = $96,800 - $5,800 = $91,000

Tax = $17,891.25 + 28% of ($91,000 - $87,850) = $18,773.25

Taxable at special rate = $5,800 * 15% = $870

Total tax liability = $18,773.25 + $870 = $19,643.25

Jeena owed $19,643.25 in federal taxes including capital gain.