Linda Is a Qualifying Widow in 2020

question 109

Multiple Choice

Linda is a qualifying widow in 2020. In 2020, she reports $80,000 of taxable income (all ordinary) . What is her gross tax liability using the tax rate schedules? (Use the Tax rate schedules.)

• A)$9,205
• B)$11,948
• C)$13,390
• D)$15,893

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Definitions:

Fixed Expenses

Expenses that remain constant regardless of variations in the level of production or the volume of sales, like lease payments or wages.

Degree Of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating the impact of fixed costs on earnings.

Variable Expenses

Expenses that vary directly with the amount of activity or production volume.

Fixed Expenses

Expenses that do not change with the level of production or sales, remaining constant regardless of business activity levels.