ACFI201 Lecture 4: ACFI201 Week 4
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Through November, Tex has received gross income of $100,000. ForDecember, Tex is considering whether to accept one more workengagement for the year. Engagement 1 will generate $8,360 ofrevenue at a cost of $4,500, which is deductible for AGI. Incontrast, engagement 2 will generate $8,360 of revenue at a cost of$3,860, which is deductible as an itemized deduction. Tex files asa single taxpayer. (use the tax rate schedules.) |
a. | Calculate Tex's taxable income assuming he chooses engagement 1and assuming he chooses engagement 2. Assume he has no itemizeddeductions other than those generated by engagement 2. |
b. | Calculate Tex's taxable income assuming he chooses engagement 1and assuming he chooses engagement 2. Assume he has $4,800 ofitemized deductions other than those generated by engagement 2. |
c. | Calculate Tex's taxable income assuming he chooses engagement 1and assuming he chooses engagement 2. Assume he has $10,480 ofitemized deductions other than those generated by engagement 2. |