Robert Is a Single Taxpayer Who Has AGI of $145,000

question 70

Multiple Choice

Robert is a single taxpayer who has AGI of $145,000 in 2018; his taxable income is $122,000.What is his federal tax liability for 2018?

• A)$18,719.00
• B)$9,480.00
• C)$23,569.50
• D)$29,089.50
• E)$29,280.00

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions to shareholders, reinvested in the business or kept as reserve.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thus preparing the books for the next period.

Adjusted Trial Balance

An enumeration of every account and its balance following adjustment entries, employed in the development of financial reports.

Retained Earnings

The amount of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.