Bang Nguyen Recently Graduated from College and Started Working in a Good

question 12

Multiple Choice

Bang Nguyen recently graduated from college and started working in a good job. He has a little money invested in a stock that pays no dividends. He lives in an apartment, is single, and has no dependents. He has a $22,000 student loan balance and he paid $600 interest in 2011. He is considering going back to school part-time for some additional computer classes. He does not have a personal IRA and he contributed 2% of his $38,750 salary to his 401K plan at work for 2011. He is just completing his tax return for 2011. Based on the information below, answer the following questions.

-What is Bang's marginal tax rate for his current level of taxable income?

• A) 10%
• B) 15%
• C) 12.5%
• D) 25%

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Definitions:

Remittance Advice

A document sent by a customer to a supplier, notifying the supplier that an invoice has been paid, usually accompanying the payment.

Invoice

The bill that the seller sends to the buyer.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure consistency and accuracy in financial records.

Company's Records

Documentation and files maintained by a company, detailing its financial transactions, legal obligations, and operational activities.