Question

3. Your clients Betty and Joe (MFT) have a $140,000 gross income, a $100,000 taxable income and they owe $17,250 in federal taxes. What is there effective federal tax rate? a. 12.321% b. 17.250% c. 25% d. None of the above 4. The purpose of a use tax is to: a. Prevent unwanted social behavior such as smoking and drinking. b. Tax the extraction of natural resources. c. Prevent the avoidance of the sales tax through the purchase of items in other states with lower or no taxes. d. Tax gifts made in anticipation of beating the estate tax 5. Stan and Judy are married (MF]). Stan is age 66. Judy is age 62 and she is blind. What is the total standard deduction they will be allowed for the year? As you know the standard deduction for the year is $24,800 and the additional standard deduction is $1,300. a. $24,800 b. $26,100 c. $27,400 d. None of the above

Answer 1

3.•The most straightforward way to calculate effective tax rate is to divide the income tax expenses by the earnings (or income earned) before taxes.

3 answer in image with calculation -

3- Effective federal Tax rate с 11250 140,000 | | 12 .321 . => Option (a) is сонес! СоңЯ ес

4. The purpose of a use tax is to:

option ( c) is correct -

Prevent the avoidance of the sales tax through the purchase of items in other states with lower or no taxes.

5. The standard deduction for 2020 is $12,400 for singles and $24,800 for married joint filers. There is also an “additional standard deduction,” for older taxpayers and those who are blind. A married filer who is blind or aged 65 and over can claim $1,300 for themselves.

So, option ( b) is correct.

{ 24800+ 1300 } = $26,100

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