[Anonymous]

Wiley Question –

Taxable income

Over/ but not over / Pay / + % on excess / Of the amount over

$ 0 / $ 50,000 / $ 0 15% / $ 0

50,000 / 75,000 / 7,500/ 25 / 50,000

75,000 / 100,000 /13,750 /34 / 75,000

100,00 0/ 335,000 / 22,250 / 39 / 100,000

Items 1 through 14 below pertain to the computation of Ral Corp.’s 2013 federal income tax. For each item, select the

appropriate amount. An amount may be selected once, more than once, or not at all.

14. Ral’s federal income tax for 2013 if taxable income were $100,000.

Answer: 14. (Z; $22,250) The tax rate schedule indicates that the tax on $100,000 of taxable income is $22,250.

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Why is it 22,250 instead of 13,570? On the tax rate schedule, it says, “Over 75,000, but not over 100,000” you pay 13,750. And then, OVER 100,000 you pay 22,250. 100,000 IS NOT OVER 100,000.

[mla1169]

Keep reading after the $13,750.

You also need to pay 34% of the amount over 75k. So his income is $25k over $75k. 25,000 x .34= 8500 plus the $13,750 equals $22,250.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

Keep reading after the $13,750.

You also need to pay 34% of the amount over 75k. So his income is $25k over $75k. 25,000 x .34= 8500 plus the $13,750 equals $22,250.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

Oh wow, I completely missed that part. I feel that this will definitely cost me points on exam day. So important to RTMFQ.

[Anonymous]

Oh wow, I completely missed that part. I feel that this will definitely cost me points on exam day. So important to RTMFQ.

[Author]

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