1. Donald, age 65, withdraws $14500 for retirement from his Roth IRA this year. How much...

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1. Donald, age 65, withdraws $14500 for retirement from his Roth IRA this year. How much...

1. Donald, age 65, withdraws $14500 for retirement from his Roth IRA this year. How much will he owe in taxes if his current marginal tax rate is 12% and his average tax rate is 9%?
a. $1740

b. $0

c. $435

d. $1305

2. Nicole sold shares of Disney Company that were given to her 20 years ago by her grandmother to pay for her down-payment on her new home. She has a 22% marginal tax rate and a 15.1% average tax rate. How much tax will she pay on her $51000 gain in the stock?

a. 15%

b. 0%

c. 15.1%

d. 22%

3. Michael has an adjusted gross income of $105000. His Schedule A expenses were as follows:

•		Interest on home mortgage, $12000
•		Property taxes on home, $4600
•		State income tax, $8000
•		Charitable contributions, $1000

What will he be able to claim for total itemized deductions?

a. $13000

b. $25600

c. $23000

d. He should take the standard deduction.

business accounting

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Answer 1

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