1. For each of the following, select items in the list (may be more than one) that are tax deductions.
a. Charitable donations
b. Moving expenses
c. Child care cost
d. State personal income taxes paid
2. Calculate the Total Liquid Assets
Money market account $ 4240 Medical Bills $ 740
Mortgage $ 104560 Checking account $ 780
Retirement account $ 288100 Credit card balance $ 1120
(Round your answer to the nearest whole number.
3. Calculate the Total Current Liabilities
Money market account $ 3380 Medical Bills $ 3240
Mortgage $ 113620 Checking account $ 380
Retirement account $ 220600 Credit card balance $ 2520
(Round your answer to the nearest whole number.) Do not include the comma, period, and "$" sign in your
4. Based on this financial data, calculate the debt ratio.
Liabilities $ 9030 Net Worth $ 63700
Liquid Assets $ 4790 Current Liabilities $ 1720
Monthly Credit Payments $ 2600 Take-home Pay $ 3030
Monthly Savings $ 440 Gross Income $ 3450
5. Based on this financial data, calculate the Current Ratio.
Liabilities $ 7670 Net Worth $ 64400
Liquid Assets $ 4410 Current Liabilities $ 1760
Monthly Credit Payments $ 2060 Take-home Pay $ 3150
Monthly Savings $ 300 Gross Income $ 3270
6. Based on this financial data, calculate the Debt-Payments Ratio.
Liabilities $ 8490 Net Worth $ 64500
Liquid Assets $ 4410 Current Liabilities $ 1780
Monthly Credit Payments $ 680 Take-home Pay $ 3130
Monthly Savings $ 220 Gross Income $ 3390
7. Based on this financial data, calculate the Savings Ratio.
Liabilities $ 7990 Net Worth $ 66000
Liquid Assets $ 4510 Current Liabilities $ 2140
Monthly Credit Payments $ 720 Take-home Pay $ 3070
Monthly Savings $ 120 Gross Income $ 5330
8. Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes? How much?
Adjusted gross income $ 42,750 Itemized deductions $ 12,020
Child care tax credit $ 500 Federal income tax withheld $ 2,400
Amount for personal exemptions $ 7,560 AVERAGE Tax Rate 5 percent
Enter "tax refund" or "payment due" ___________ How much ____________
9. Jenny prepares her own income tax return each year. A tax preparer would charge her $220 for this service. Over a period of 10 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 7 percent on her savings.
10. On December 30, you decide to make a $1800 charitable donation. If you are in the 10 percent tax bracket, how much will you save in taxes for the current year?© BrainMass Inc. brainmass.com June 4, 2020, 5:18 am ad1c9bdddf
This solution illustrates how to solve numerous personal financial planning problems.