Alan and Sara Winthrop Are a Married Couple Who File

question 49

Multiple Choice

Alan and Sara Winthrop are a married couple who file a joint income tax return.They have two children,so they claim a total of 4 exemptions ($4,050 for each exemption) .In addition,they have legitimate itemized deductions totaling $25,750.Their total income from wages is $213,500.Assume the following tax table is applicable:
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Married Couples Filing Joint Returns
? $\begin{array}{lccc} & \text { You Pay This } & \text { Plus This Percentage } & \text { Average Tax } \\\text { If Your Taxable } & \text { Amount on the } & \text { on the Excess over the } & \text { Rate at } \\\text { Income Is } & \text { Base of the Bracket } & \text { Base } & \text { Top of Bracket } \\\hline\text { Up to } \$ 18,650 & \$ 0.00 & 10.0 \% & 10.0 \% \\\$ 18,650-\$ 75,900 & 1,865.00 & 15.0 & 13.8 \\\$ 75,900-\$ 153,100 & 10,452.50 & 25.0 & 19.4 \\\$ 153,100-\$ 233,350 & 29,752.50 & 28.0 & 22.4 \\\$ 233,350-\$ 416,700 & 52,222.50 & 33.0 & 27.1 \\\$ 416,700-\$ 470,700 & 112,728.00 & 35.0 & 28.0 \\\text { Over } \$ 470,700 & 131,628.00 & 39.6 & 39.6\end{array}$
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What is their federal tax liability?
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• A) $31,077.50
• B) $33,522.25
• C) $38,760.50
• D) $36,664.00
• E) $34,918.50

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