What is federal tax liability before considering tax credits

Assignment Help Financial Accounting
Reference no: EM132709948

Problem 1: Jeffrey is a self-employed carpenter. He bills his clients $60,000 a year. Total business expenses amount to $10,000 a year. His only eligible income tax deduction is $5,000 for an RRSP contribution. If the first $36,000 of taxable income is taxed by the Federal Government at a rate of 15% and levels up to approximately $70,000 are taxed at 22%, what is his federal tax liability before considering tax credits?

1. $5,760

2. $6,750

3. $7,380

4. $9,900

5. $12,500

Problem 2: Joan Zemke expects interest rates to decline over the next few months. To maximize her earnings she should use a(n)

1. 5-year GIC

2. Interest-bearing chequing account

3. Regular savings account

4. Six-month GIC

5. Money market fund

Reference no: EM132709948

Questions Cloud

Define respondeant superior : Define respondeant superior and discuss why this is an important legal concept of which employers should be aware.
What the approximate real rate of return is : If the annual rate is 10% and inflation is 4%, then the approximate real rate of return is? A service designed for people who write only few cheques each month
Government bureaucracies of ireland : Do you find it strange that the U.S. bureaucracy is far smaller than the government bureaucracies of Ireland, France, Finland, Hungary, and Canada
Which would be considered a long-term liability : Which would be considered a long-term liability? If the annual rate is 10%, and the interest is compounded quarterly, what is the effective annual rate?
What is federal tax liability before considering tax credits : Federal Government at a rate of 15% and levels up to approximately $70,000 are taxed at 22%, what is his federal tax liability before considering tax credits?
Which winning in the lottery affects a person tax situation : Which Winning $10,000 in the lottery affects a person's tax situation by?Increasing the individuals marginal tax rate to 50%. / Is not taxed
What taylor take-home pay is : CPP contributions and employment insurance are $43,900. She also had after-tax investment earnings of $12,000. Taylor's take-home pay is
Natural entitlement to enjoy life-political equality : The contract between ruler and ruled could not limit the individual's natural entitlement to enjoy life, political equality,
What jack capital gains taxes are : Jack sold $20,000 worth of stocks that were purchased one year ago for $15,000. He is in a 22% tax bracket. Jack's capital gains taxes are

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the related journal entries for the year ended

Identify the type of lease in the case above and justify your answer based on the standard. Prepare the related journal entries for the year ended 2017 in Books

  Why did the company report a foreign currency loss

Why did the company report a foreign currency loss as a result of the devaluation of the Brazilian Real - What does the company mean when it states

  What is the standard deviation of a portfolio of two stocks

What is the standard deviation of a portfolio of two stocks given the following data? Stock A has a standard deviation of 22%. Stock B has a standard deviation

  What was thebook value of the equipment on january 1

What was the annual amount ofdepreciation for the years 2013, 2014, and 2015 using thestraight-line method of depreciation?- What was thebook value of the equipment on January 1, 2016?

  Multiple choices in capital budgetingcoffer co is analyzing

multiple choices in capital budgeting.coffer co. is analyzing two projects for the future.assume that only one project

  How much the accounts receivable balance is debit or credit

At December 31, 2022, the Accounts Receivable balance is how much debit/ credit? At December 1, 2022, Sara Corp. Accounts Receivable balance was $16130.

  Compute the cost of capital for the project

Compute the cost of capital for the project. Explain why it is not necessary to subtract the interest payments and the dividend payments and appreciation from the inflow of $50,000 in carrying out this computation.

  What is the total amount invested by all stockholders

On February 25, Madison County Rocks Inc., a marble contractor, issued for cash 120,000 shares of $36 par common stock at $40, and on June 3, it issued for cash 50,000 shares of $8 par preferred stock at $9. What is the total amount invested (total p..

  How to solve journal entry using periodic inventory system

How to calculate journal entries using periodic inventory system? 3/6 returned 100,6 merchandise purchased 3/2. 3/12 paid balance due

  Identify two multinational companies from the global 500

Discuss how legitimacy is managed through reporting by the two companies (in Item 3 above) from the perspectives of Stakeholder Theory and Legitimacy Theory.

  Compute the return on total assets

Compute the return on total assets and the return on common shareholders' equity for the year ended June 30, 2020. Prepare the company's classified

  Calculate the earnings per share of common stock

Gladwell Industries reported net income of $813,700 for its fiscal year ended September 30, 2016. At the beginning of that fiscal year, 257,000 shares of common stock were outstanding. Calculate the earnings per share of common stock for the year end..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd