Mr and Mrs

question 48

Multiple Choice

Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in 2016, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

• A) $6,370
• B) $5,422
• C) $4,900
• D) None of the above.