Question 1

Domenic Tavella is a manager of a food store. He is married and files jointly with his wife. Last year Domenic earned $48,260 and his wife earned $34,350. In addition, they earned $310 interest on their investments. They each contributed $1,500 to a retirement account. They had the following itemized deductions: $3,300 in real estate taxes, $8,400 in mortgage interest and $1,890 in charitable contributions.
A)What is the amount of their adjusted gross income?
B)What is the amount of their taxable income?

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Question 2

Darrick Johnson wants to buy a home. He has narrowed the choice down to a $245,000 home in Sweet Oak and a $282,000 home in Cherry Hill. With regard to property taxes, Sweet Oak has an assessment rate of 90% and a tax rate of $1.45 per $100 of assessed value, while Cherry Hill has a 70% assessment rate and a tax rate of 19.4 mills. Which house has the higher property tax, and by how much? (Round to the nearest cent)

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Question 3

James and Becky Harris are filing a joint tax return. Their adjusted gross income for the last year was $85,940. Itemized deductions are $12,200. Together they had $1,155 tax withheld each month from their pay checks.
A)What is their tax liability? (Use Exhibit 18-3 from your text)
B)Are they entitled to a refund or do they owe additional taxes? How much?

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Question 4

Marcos is single. His taxable income is $65,985. Find the tax liability using the Tax Table (Exhibit 18-3 from your text).

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Question 5

The total assessed property value in Belletown is $108,000,000. Budget planners have determined that $8,305,200 will be required to provide all government services next year. What tax rate is required to meet the budgetary demands? (Round to the nearest hundredth).

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Question 6

Langhorne County planners have decided that an additional $3,500,000 in taxes will be required next year for street repairs. The total assessed value of the property in Langhorne County is $118,200,000. How much will this add to property tax expressed as per $1,000 of assessed value?

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Question 7

Steven Young purchased a home with a market value of $173,000. The assessment rate in the country is 60% and the property tax rate is 17.32 mills. What is the amount of property tax? (Round to the nearest cent)

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Question 8

Jason Fox owns a house with an assessed value of $235,000. The tax rate is $13.20 per $1,000 of assessed value. What is the amount of property tax?

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Question 9

Bobby and Lisa are married. Last year Lisa earned $47,300 and Bobby earned $18,000 in wages. Additional tax information for the year is as follows: Interest earned: $2,700; alimony paid: $5,600; penalty on early withdrawal of savings: $250; state and local income taxes paid: $5,100; contributions to charity: $2,200. Find the taxable income if they file a joint return.

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Question 10

Kyle Wilson pays $3,456 in property taxes on a house with an assessed value of $96,000. What is the tax rate per $100 of assessed value?

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Question 11

Fred Stearns is single and earned $48,200 as a graphic artist last year. He had the following itemized deductions: $964 state and local taxes, $1,540 in mortgage interest and $360 in charitable deductions.
A)What is his taxable income?
B)What is the amount of his tax liability? (Use Exhibit 18-3 from your text)

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Question 12

Grant Davis and his wife are filing a joint income tax return and had an adjusted gross income of $81,820, and itemized deductions of $8,650.
A)What is the amount of taxable income?
B)What is their tax liability? (Use Exhibit 18-3 from your text)

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Question 13

Red Goode had taxable income last year of $108,700. If he files as single, what is the amount of his tax liability?

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Question 14

The federal excise tax on tires is $.15 per lb. Brenden Services purchased 620 tires rated at 70 lbs each for its fleet of trucks. The tires had a retail price of $120 each. The state sales tax is $$4 \frac { 3 } { 4 } \%$$ . 
A)What is the total sales tax?
B)What is the total excise tax?
C)What is the total purchase price of the tires?

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Question 15

The budget planners for Morrisville have determined that $6,295,000 will be needed to provide the governmental services for next year. The total assessed property value in Morrisville is $98,240,000. What tax rate will need to be imposed to meet these budgetary demands?
A)Express as a percentage
B)Express in mills

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Question 16

Manuel owns some property which has an assessed value of $85,800. Find the tax due if the tax rate is 5.75% of the assessed value.

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Question 17

Mindy is single. Her taxable income is $161,321. Use the Tax Rate Schedule in your text to find her tax liability.

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Question 18

Stanislaw owns some property which has an assessed value of $112,800. Find the tax due if the tax rate is 6.5% of the assessed value.

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Question 19

Janice Harris wants to buy a home. She has narrowed the choice down to a $125,000 home in Summerton and a $138,000 home in Lionsville. With regard to property taxes, Summerton has an assessment rate of 100% and a tax rate of $1.86 per $100 of assessed value, while Lionsville has an 80% assessment rate and a tax rate of 22.6 mills. Which house has the higher property tax, and by how much? (Round to the nearest cent)

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Question 20

The budget planners for Dunmore have determined that $2,165,000 will be needed to provide the governmental services for next year. The total assessed property value in Dunmore is $24,120,000. What tax rate will need to be imposed to meet these budgetary demands?
A)Express as a percentage
B)Express in mills

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Quiz 18: Taxes