Chapter 7, Income Taxes Video Solutions, Financial Algebra

01:35

Problem 1

How can the quote be interpreted in light of what you have learned?
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Jake Dixon

Numerade Educator

01:15

Problem 2

Determine the tax for each filing status and taxable income amount.
a. single $57,723 b. head of household $60,950
c. married filing jointly d. married filing separately
$\$ 63,999 \qquad \$ 57,521$

Breanna Ollech

Numerade Educator

01:55

Problem 3

Given a taxable income amount, express the tax table line that would be used in compound inequality notation.
$\begin{array}{ll}{\text { a. } i=\$ 60,124} & {\text { b. } i=\$ 57,333}\end{array}$

Sneha Ravi

Numerade Educator

02:12

Problem 4

Given the taxable income amount, express the tax table line that would be used in interval notation.
a. $i=\$ 57,555$ b. $i=\$ 63,411$ c. $i=\$ 60,002$ d. $i=\$ 63,301$

Sheryl Ezze

Numerade Educator

03:40

Given the filing status and the tax, identify the taxable income interval that was used to determine the tax.
a. head of household $\$ 9,406$
b. single $\$ 12,275$
d. single $\$ 11,538$
d. married filing jointly $\$ 8,291$
e. married filing separately $\$ 10,788$

Sneha Ravi

Numerade Educator

03:43

Problem 6

Use these tax schedules to answer Exercises 6–10.
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Calculate the tax for each taxable income of a head of household.
$\begin{array}{ll}{\text { a. } \$ 400,000} & {\text { b. } \$ 10,954} \\ {\text { c. } \$ 108,962} & {\text { d. } \$ 201,102}\end{array}$

Sneha Ravi

Numerade Educator

01:51

Problem 7

Use these tax schedules to answer Exercises 6–10.
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For what taxable income would a taxpayer have to pay $5,975.00 in
taxes? Explain your reasoning.

Sneha Ravi

Numerade Educator

02:02

Problem 8

Use these tax schedules to answer Exercises 6–10.
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According to the tax schedule, Rich has to pay $25,000 in taxes. What is Rich’s taxable income?

Sneha Ravi

Numerade Educator

01:39

Problem 9

Use these tax schedules to answer Exercises 6–10.
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Kelly's taxable income is $\$ 110,000$ . Approximately what percent of her taxable income is her tax?

Sneha Ravi

Numerade Educator

00:56

Problem 10

Use these tax schedules to answer Exercises 6–10.
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Maureen's taxable income, $t,$ is between $\$ 182,400$ and $\$ 357,700$ . Write an algebraic expression that represents her tax.

Sneha Ravi

Numerade Educator

03:48

Problem 11

Use this tax computation worksheet to answer Exercises 11–14.
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Calculate the tax for each of the taxable incomes of a head of house-hold taxpayer.
$\begin{array}{ll}{\text { a. } \$ 400,000} & {\text { b. } \$ 108,962} \\ {\text { c. } \$ 201,102} & {\text { d. } \$ 106,000}\end{array}$

Sneha Ravi

Numerade Educator

00:54

Problem 12

Use this tax computation worksheet to answer Exercises 11–14.
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Let x represent a head of household taxpayer’s taxable income that is over $357,700. Write an expression for this taxpayer’s tax in terms of x.

Sneha Ravi

Numerade Educator

02:44

Problem 13

Use this tax computation worksheet to answer Exercises 11–14.
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Let $w$ represent the tax for any taxable income $t$ on the interval $182,400 < t \leq 357,700$ .
a. Calculate the lowest tax on this interval.
b. Calculate the highest tax on this interval.
c. Given the interval, $182,400 < t \leq 357,700,$ express the tax in terms of $w .$

Sneha Ravi

Numerade Educator

00:57

Problem 14

Use this tax computation worksheet to answer Exercises 11–14.
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Calculate the tax using the computation worksheet for a head of household taxpayer with a taxable income of $115,700.

Sneha Ravi

Numerade Educator

00:59

Problem 15

Using the tax schedule from Exercise 6, calculate the tax for the person in Exercise 14.

Sneha Ravi

Numerade Educator

01:49

Problem 16

Is there a difference in the tax in Exercises 14 and 15? If so, how much and which method favors the taxpayer?

Sneha Ravi

Numerade Educator

00:45

Problem 17

Use the tax table at the right to calculate the tax of a head of household taxpayer with a tax-
able income of $27,811.

Sneha Ravi

Numerade Educator

01:07

Problem 18

Use Schedule Z from Exercise 6 to calculate the tax for the tax- payer in Exercise 17.

Sneha Ravi

Numerade Educator

01:18

Problem 19

Is there a difference in the tax in Exercises 17 and 18? If so, how much and which method favors
the taxpayer?

Sneha Ravi

Numerade Educator

06:37

Problem 20

In 1990, taxpayers used the following tax schedule.
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a. Compare the tax of a head of household taxpayer whose taxable income in 1990 was $120,000 with a head of household tax- payer’s tax, using the tax schedule from Exercise 6, who earns the
same amount.
b. What percent of the taxable income was the tax in each year?
c. Go to the IRS website (www.irs.gov) and fi nd the most recent tax rate schedule. Compare the tax of the same head of household taxpayer from part a with a head of household taxpayer making
the same salary today. What percent increase has there been in the tax from then to now?

Sneha Ravi

Numerade Educator

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