to be able to understand the problem can you please show details and reasoning for your computation.
1) The following information is available for Sam and Sally Wells, a married couple filing a joint return, for 2007:
Salary (earned by Tom) $100,000
Interest income 12,000
Deductible IRA contributions 8,000
Itemized deductions 11,000
a. What is the amount of their gross income?
b. What is the amount of their adjusted gross income?
c. What is the amount of their taxable income?
d. What is the amount of their tax liability (gross tax)?
e. What is the amount of their tax due or (refund due)?
2) Carla, a single taxpayer, had the following income and deductions for the tax year 2006:
Business income 30,000
Qualifying dividends 10,000
Tax-exempt income 20,000
TOTAL INCOME $130,000
Business expenses $20,000
Itemized deductions 12,000
Personal exemption 3,400
TOTAL DEDUCTIONS $35,400
a) What is Carla's taxable income and tas liability for the year?
b) What are Carla's marginal, average, and effective tax rates?© BrainMass Inc. brainmass.com June 3, 2020, 10:13 pm ad1c9bdddf
Taxable income and liability issues are emphasized.