Miley, a Single Taxpayer, Plans on Reporting $31,125 of Taxable

question 91

Multiple Choice

Miley, a single taxpayer, plans on reporting $31,125 of taxable income this year (all of her income is from a part-time job) . She is considering applying for a second part-time job that would give her an additional $10,000 of taxable income. By how much will the income from the second job increase her tax liability? (Use the tax rate schedules.)

• A)$1,000
• B)$1,200
• C)$1,300
• D)$2,400

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Definitions:

Worksheet

A document or tool used by accountants to plan adjustments and prepare financial statements before they are posted to ledgers.

Beginning Inventories

Beginning Inventories are the inventory levels of a company at the start of an accounting period, used as a baseline for calculating inventory changes.

Ending Inventories

The total value of all inventory a company has at the end of its accounting period, including products ready for sale and materials for production.

Income Statement Columns

Sections on an income statement, typically including revenues, expenses, and net income, to display financial performance.