Tom Suzuki's Tax Liability for the Year Is $2,450

question 55

Essay

Tom Suzuki's tax liability for the year is $2,450. He had $2,050 of federal income taxes withheld from his paycheck during the year by his employer and has $2,000 in tax credits. What are Tom's taxes due or tax refund for the year?

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Definitions:

Days' Sales

A financial ratio that calculates the average time it takes for a company to convert its inventory into sales.

Physical Inventory

A process where a business counts its entire inventory by hand at a specific point in time.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, showing its assets, liabilities, and shareholders' equity.

Income Statement

A financial report that shows a company's revenues, expenses, and profit or loss over a specific period.