26. Kana is a single wage earner with no dependents and taxable income of $168,700 in 2020. Her 2019 taxable income was $155,000 and tax liability was $31, 375. Calculate the following (note: thisquestion requires the use of the tax tables in Appendix A): Kana's 2020 income tax liability Kana's minimum required 2020 annual payment necessary to avoid penalty

The minimum required annual payment of tax represents the minimum amount a taxpayer must pay…

Answered: ): Kana's 2020 income tax liability…

Business

Accounting

): Kana's 2020 income tax liability Kana's minimum required 2020 annual payment necessary to avoid penalty

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 6P: Kana is a single wage earner with no dependents and taxable income of $205,000 in 2019. Her 2018...

See similar textbooks

Related questions

Q: At January 1, 2023, Cullumber Corp. had 197000 common shares outstanding (no preferred shares…

A: To calculate basic earnings per share (EPS), you need to divide the net income attributable to…

Q: I have 4 more journal lines at the end of the journal. Also, answer this, 2. Assume that as of…

A: Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…

Q: What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the…

A: In this question we need to compute total amount of AGI deductions relating to the condo that Alexa…

Q: Selected current year-end financial statements of Cabot Corporation follow. (All sales were on…

A: The ratio analysis helps to analyse the financial statements on the basis of the different elements…

Q: Eifel, Inc. is an S corporation and has three employees. Eifel has established a Simple IRA plan for…

A: Extra Points to keep in mind:Employees can choose to contribute more than the minimum or maximum…

Q: This year, Sigma, Inc

A: INTRODUCTION:Taxable income is any remuneration received by an individual or corporation that is…

Q: CM replaced a major component in Plant A which has been operating 20 years and has a 30- year…

A: A journal entry in accounting serves as a record of a financial transaction in the accounting…

Q: 5 Budgetary Control and Responsibility Accounting The data for Cheyenne Corporation is given below.…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders'…

A: The total sum of money that would be paid back to the shareholders in the event that the firm was to…

Q: Jelly's Grocery Store showed the following account balances at the end of 2022: Cash Accounts…

A: A trial balance is a financial statement that lists the balances of all general ledger accounts of a…

Q: Exercise B-12 (Algo) Present value of bonds LO P1, P3 Spiller Corporation plans to issue 10%,…

A: Monthly Payment Table Factor Present Value Of Loan $410 × 16.4173* = $6,731.113Table Values Are…

Q: A7

A: The account receivables represent the amount due from the customers. The cash collection schedule is…

Q: Situation 4: On March 31, 2017, Wayside Corporation purchased a new piec manufacturing equipment for…

A: Straight-Line Method -One of the most common techniques of depreciation is the straight-line…

Q: Required a-1. Based on the preceding information, recommend whether to eliminate Division B. a-2.…

Q: Sarasota Company purchased a machine at a cost of $90,500. The machine is expected to have a $5,400…

A: The depreciation is provided to allocate the cost of fixed assets, The depreciation can be provided…

Q: ecember 31, 2024, Cordova Leather's liabilities include the following: $15.9 million of noncallable…

A: Liabilities -The term "liability" refers to any type of debt that a company has to a person or…

Q: TGW, a calendar year corporation, reported $4,124,000 net income before tax on its financial…

A: The taxable income indicates the income computed with respect to Income Taxation. The taxable income…

Q: Use examples of managerial accounting that would impact an accountant's career in banking.

A: Managerial accounting, also known as operation accounting, is a branch of account that involves the…

Q: ew bogl... S History Bookmarks Develop Window Help Homework i F1 Free QR Code Generator - Cre... 2…

A: The company that sells goods to its customers with warranty are required to record the warranty…

Q: QUESTION 9 Tobias was injured while working at his job. During the year, he received $25,000…

A: Gross income refers to the sum of income received from all the sources. At the time of tax filing,…

Q: The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged…

A: Depreciation: Depreciation is a method of reduction in a capitalized cost of a fixed assets for the…

Q: Sheridan Company had the following operating data for the year for its computer division: sales,…

A: Controllable margin is the excess of contribution margin over controllable fixed costs. The…

Q: Wildhorse Corporation, which uses straight-line depreciation and amortization, incurred the…

A: Acquisition of R & D equipment = $852,000Cost of making minor modification = $137,000Advertising…

Q: Allowance method entries The following transactions were completed by Wild Trout Gallery during the…

A: The allowance method, also referred to as the allowance for doubtful accounts method, is an…

Q: Salieri Inc. provides housecleaning services to its clients. The company uses an activity-based…

A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…

Q: dentify the rule that determines whether a taxpayer must include in income a refund of an amount…

A: The tax benefit rule is the principle that determines whether a taxpayer must include in income a…

Q: Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet…

A: The differential cost schedule is prepared to compare the different alternatives available with the…

Q: Archer Electronics Company's actual sales and purchases for April and May are shown here along with…

A: The cash receipts schedule accounts for the entire amount of money anticipated to be collected from…

Q: Communication Comp Empathy Comp Decision Making Comp 4 4 Performance 22N Evaluation Sevim 3 N NO P…

A: A budget refers to a plan that is pre-decided and lists all the estimated expenses and the estimated…

Q: At the end of last year, Helen's, Inc. (uses a periodic inventory system with a physical inventory…

A: Periodic Inventory SystemA periodic inventory system is an approach to inventory management in a…

Q: A nine-year note for $3200 issued on October 1, 2015, with interest at 6.6% compounded annually is…

A: A promissory note is a legal instrument or document, in which one party promises in writing to pay a…

Q: Integrating Accounting for Liabilities and Equity Obtain Apple's fiscal year 2019 10-K (filed…

A: The question is related to Ratio Analysis. 1. The Current Ratio is calculated with the help of…

Q: Average rate of return—new product Oahu Inc. is considering an investment in new equipment that will…

A: The objective of the question is to calculate the average rate of return on the new equipment that…

Q: Which of the following statements is not true regarding the education credits? Multiple Choice…

A: The objective of the question is to identify the incorrect statement about the education credits,…

Q: Current Attempt in Progress At December 31, 2021, Marigold Company had 451000 shares of common stock…

A: EARNINGS PER SHAREEarnings per share refers to the amount of earnings that is distributed by the…

Q: The Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year.…

A: Notes Payable is a liability borrowed from the lender for a fixed period of time. It acts as a…

Q: 1. Calculate the operating income of Titan for Year 4 and Year 5;

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: During the year, Maxim sold 430 units. What is ending inventory using the average cost method? Note:…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past…

A: First, we have to calculate average mean of returns . Average mean = (5% + 12% + 8% + 11%) / 4 =…

Q: Riverbed Company had 826000 shares of common stock outstanding on January 1, issued 365000 shares on…

A: The weighted average number of shares are calculated on the basis of fraction of time period. The…

Q: Variable manufacturing costs Variable selling and administrative costs Fixed manufacturing costs…

A: The total cost of product comprises production and selling cost. The unit cost is calculated as…

Q: a) Calculate the transportation freight charges per ton on a deadheading basis for 30mt freight.…

A: a) Calculate the transportation freight charges per ton:The transportation freight charges per ton…

Q: You are required to: (a) Draw up a Job Cost Sheet; (b) Calculate and enter the revised costs using…

A: A job cost sheet is prepared at the end of the period to determine the total cost incurred for a…

Q: At the beginning of the year, Oriole Company has a cash balance of $25300. During the year, the…

A: A cash budget is a financial tool that can assist both businesses and individuals in managing their…

Q: Best practices of a standard costing systems suggest that a company should use ideal standards in…

A: A standard costing system involves estimating the required costs of a production process based on…

Q: 3. Calculate Apple's return on equity for 2018 and 2019 (stockholders' equity for 2017 was $134,047…

A: It is the process of making decisions that involve the management of costs in order to achieve…

Q: Blue Sky Catering is considering whether to retain or replace its aging delivery truck. The old…

A: The company can use differential analysis while evaluating two alternatives. They will go for the…

Q: Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following…

A: Flexible budget is the budgeted amount computed at actual level of activity. This budget changes…

Q: 23. Operating income and tax rates for CJ. Company's first three years of operations were as…

A: A deferred tax adjustment is prevalent where there is a temporary difference in the book value and…

Q: Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated On January 1,…

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

26. Kana is a single wage earner with no dependents and taxable income of $168,700 in 2020. Her 2019 taxable income was $155,000 and tax liability was $31, 375. Calculate the following (note: this
question requires the use of the tax tables in Appendix A): Kana's 2020 income tax liability Kana's minimum required 2020 annual payment necessary to avoid penalty

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to minimum required annual payment of tax

VIEW

Step 2: Computation of tax liability for the year 2020

VIEW

Step 3: Computation of minimum required annual payment

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Kana is a single wage earner with no dependents and taxable income of $205,000 in 2019. Her 2018 taxable income was $155,000 and tax liability was $31,490. Calculate the following (note: this question requires the use of the tax tables in Appendix A): Kana's 2019 income tax liability $_______________ Kana's minimum required 2019 annual payment necessary to avoid penalty $______________
Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has 800 in dividends income and 1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is 10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is 500, and her interest income is 125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions.
Emily, who is single, sustains an NOL of 7,800 in 2019. The loss is carried forward to 2020. For 2020, Emilys income tax information before taking into account the 2019 NOL is as follows: The 2019 single standard deduction is 12,200; Emilys itemized deductions will exceed the 2020 single standard deduction (after adjustment for Inflation). The medical expense AGI floor is 10% In 2019. How much of the NOL carryforward can Emily use in 2020, and what is her adjusted gross income and her taxable income?
Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
During the 2019 tax year, Brian, a single taxpayer, received $ 7,400 in Social Security benefits. His adjusted gross income for the year was $14,500 (not including the Social Security benefits) and he received $ 30,000 in tax-exempt interest income and has no for-AGI deductions, Calculate the amount of the Social Security benefits that Brian must include in his gross income for 2019. SIMPIFIED TAXABLE SOCIAL SECURITY WORKSHEET (FOR MOST PEOPLE) 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1 3. Enter the total of taxable income items on Form 1040 except Social Security income. 4. Enter the amount of tax-exempt interest income. 5. Add lines 2,3, and 4 6. Enter all adjustments for AGl except for student loan interest, the domestic production activities deduction, and the tuition and fees deduction. 7. Subtract line 6 from line 5 . If zero or less, stop here, none of the Social Security benefits are taxable. 8. Enter $ 25,0001 $ 32,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 9. Subtract line 8 from line 7 . If zero or less, enter -0 - Note: If line 9 is zero or less, stop here; none of your benefits are faxable. Otherwise, go on to line 10 10. Enter $ 9,0001 $12,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 11. Subtract line 10 from line 9. If zero or less, enter -0 -. 12. Enter the smaller of line 9 or line 10 . 13. Enter one-half of line 12 14. Enter the smaller of line 2 or line 13 . 15. Multiply line 11 by 85 (. 85 ). If line 11 is zero, enter -0 -. 16. Add lines 14 and 15 17. Multiply line 1 by 85(.85) 18. Taxable benefits. Enter the smaller of line 16 or line 17 . 1.____________ 2.____________ 3.____________ 4.____________ 5.____________ 6.____________ 7.____________ 8.____________ 9.____________ 10.____________ 11.____________ 12.____________ 13.____________ 14.____________ 15.____________ 16.____________ 17.____________ 18.____________
Calculate the 2019 tax liability and the tax or refund due for each situation: a. Mark is single with no dependents and has a taxable income of 60,000. He has 9,200 withheld from his salary for the year. b. Harry and Linda are married and have taxable income of 60,000. Harry has 4,250 withheld from his salary. Linda makes estimated tax payments totaling 3,000. c. Aspra is single. His 20-year-old son, Calvin, lives with him throughout the year. Calvin pays for less than one-half of his support and his earned income for the year is 3,000. Aspra pays all costs of maintaining the household. His taxable income is 60,000. Aspras withholdings total 7,800. d. Randy and Raina are married. Because of marital discord, they are not living together at the end of the year, although they are not legally separated or divorced. Randys taxable income is 25,000, and Rainas is 60,000. Randy makes estimated tax payments of 3,500, and Raina has 7,500 in tax withheld from her salary.
Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2019 calendar tax year. Karen is covered by a pension through her employer. What is the maximum amount that Karen may deduct for contributions to her IRA for 2019? $__________________________ If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2019? $__________________________
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
Estimating taxable income, tax liability, and potential refund. Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned 55,000 as a sales representative for Planning Associates; 3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of 142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or tax owed for 2018.