Mr and Mrs Daniels, Ages 45, and 42, Had the Following

question 46

Multiple Choice

Mr and Mrs Daniels, ages 45, and 42, had the following income items in 2018:
Salaries and wages $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 122,500
Interest income $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 6,300
Dividends eligible for 15% rate $\quad$$\quad$$\quad$$\quad$$\quad$ $\quad$ 4,000
Capital gain eligible for 15% rate $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 1,900
Mr and Mrs Daniels have no dependents and claim the standard deduction. Compute their income tax liability on a joint return.

• A) $15,820
• B) $19,978
• C) $22,348
• D) None of the above.

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Definitions:

Distribution

The way in which values are spread or distributed across a range in a dataset.

Measure of Variability

A measure of variability is a summary statistic that represents the amount of dispersion in a dataset, examples include range, variance, and standard deviation.

Measure of Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, such as the mean, median, or mode.

Statistic

A numerical value that summarizes or describes an aspect of a sample.