fcs 3450 homework 4 494633

FCS 3450 HOMEWORK #4 1. Thomas Franklin arrived at the following tax information: Gross salary, $46,660 Interest earnings, $225 Dividend income, $80 One personal exemption, $3,400 Itemized deductions, $7,820 Adjustments to income, $1,150 What amount would Thomas report as taxable income? 2. If Lola Harper had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $5,450. Donations to church and other charities, $1,980 Medical and dental expenses that exceed 7.5 percent of adjusted gross income, $430 State income tax, $690 Job-related expenses that exceed 2 percent of adjusted gross income, $1,610 3. What would be the average tax rate for a person who paid taxes of $4,864.14 on a taxable income of $39,870? 4. Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes? Adjusted gross income, $46,186 Itemized deductions, $11,420 Child care tax credit, $80 Federal income tax withheld, $4,784 Amount for personal exemptions, $6,800 Average tax rate on taxable income, 15% Would you prefer a fully taxable investment earning 10.7 percent or a tax-exempt investment earning 8.1 percent? Why? (Assume a 28 percent tax rate.) On December 30, you decide to make a $1,000 charitable donation. If you are in a 28 percent tax bracket, how much would you save in taxes for the current year? If that tax savings was deposited in a savings account for the next five years at 6 percent, what would be the future value of that account?