Alice Is an Unmarried Individual

question 94

Multiple Choice

Alice is an unmarried individual. She has $182,340 taxable income in 2018. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

• A) Single $40,038; head of household $63,819
• B) Single $63,819; head of household $38,647
• C) Single $40,038; head of household $38,647
• D) None of the above

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Financial Lease

A type of lease wherein the lessee has possession and control of an asset during its significant life but does not own the asset, effectively treating it as a loan with asset as collateral.

CRA

In the context of Canadian taxation, CRA stands for Canada Revenue Agency, the federal agency responsible for tax collection and enforcement.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.