Accounting and Finance Foundations

Unit 9

Accounting and Finance Foundations Unit 9: Taxes 718

Use Lessons 21.1, 21.2, and 21.3 as guides to complete the following exercises.

1. Find the adjusted gross income if adjustments to Tony’s income totaled $4,863.65 and his income
   last year was:

• Net income from business = $35,838.67


• Dividends = $2,313.00


• Interest = $3,516.50


• Rental income = $2,398.75

2. Aaron, who is single, had an adjusted gross income of $14,670 and itemized deductions of $5,452
   last year. If he claimed himself as an exemption ($3,900 per exemption), what was Aaron’s taxable
   income?


3. Bebe is married, claims 3 exemptions ($3,900 per exemption), and takes the standard deduction
   of $12,200 for married taxpayers filing jointly. If her and her spouse’s adjusted gross income is
   $45,600, what is their taxable income?

For numbers 4-6, use the tax tables on pages 79-90 of the 1040 instructions found at

http://www.irs.gov/pub/irs-pdf/i1040.pdf to determine the federal tax due.

4. Bob is married and files jointly. He and his spouse’s taxable income is $23,678.


5. David is single. His gross income is $23,450, and his taxable income is $13,875.


6. Elisa files as head of household and has a taxable income of $13,200.

21.8.1 Income Tax

Taxes

Chapter 21

Student Assignment

Lesson 21.8 Income Tax Student Assignments