Julia Is Single and Earns a Salary of $65,000

question 71

Essay

Julia is single and earns a salary of $65,000.Her allowable deductions for adjusted gross income total $1,200 and she has $4,200 of allowable itemized deductions.What is Julia's taxable income and income tax liability for 2017?

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Definitions:

Accounting Equation

The foundational principle of accounting expressing that assets equal the sum of liabilities and shareholder's equity.

Purchased Equipment

Fixed assets acquired by a company for use in the production or supply of goods and services, not for resale.

Accounting Equation

The fundamental equation of accounting, represented as Assets = Liabilities + Equity, serving as the foundation for double-entry bookkeeping.

Utility Bill

A statement of charges incurred for services such as electricity, gas, water, or sewage.