Misti Purchased a Residence This Year Misti Files as a Head of Household

question 62

Essay

Misti purchased a residence this year. Misti, age 32, is a single parent and lives with her 1-year-old daughter. This year, Misti received a salary of $160,000 and made the following payments: Use Standard deduction.
$\begin{array}{l}\begin{array}{lll}\text {Home mortgage interest( \$ 500,000 acquisition debt)}\\\text {Real estate taxes}\\\text {State income taxes paid}\\\text {Income tax preparation fee}\\\text {Charitable contributions (cash to their church)}\\\end{array}\begin{array}{lll}\$ 15,000 \\1,52 \\1,340 \\2,250 \\120\end{array}\end{array}$

Misti files as a head of household. Calculate her taxable income this year.

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Definitions:

Inventory Turnover Ratio

The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.

Average Days

An accounting measure used to calculate the average number of days taken for a company to collect cash from its customers or pay its debts.

Dividend Yield Ratio

An economic ratio that illustrates the yearly dividend disbursement of a company as a percentage of its stock value.

Net Profit Margin

A financial ratio that shows the percentage of profit a company makes for each dollar of sales, after all expenses are deducted.