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:

Common Stock

Common Stock represents a type of equity ownership in a corporation, giving holders a share of the profits in the form of dividends and voting rights in corporate decisions.

Rate Of Yield

The earnings generated and realized on an investment over a particular period of time, expressed as a percentage.

Preferred Stock

A category of corporate ownership that possesses a superior right to the company's assets and profits compared to common stock, typically featuring stable dividend payouts.

Par

The face value of a bond or stock; for bonds, it's the amount to be repaid at maturity, and for stocks, it's a nominal dollar value used for accounting.