Carson Wentz of Philadelphia determined the following tax in

Carson Wentz, of Philadelphia, determined the following tax information: salary, $160,000; interest earned, $3,000; qualified retirement plan contribution, $4,000; personal exemption, $4,050; itemized deductions, $11,000. Filing single, calculate Carson\'s taxable income and tax liability. (Hint: Use Table 4-2.) Round your answer for tax liability to the nearest cent. Taxable income Tax Liability

Solution

First question:

Second question:

Third question:

Particulars	Amount
Salary	1,60,000
Taxable interest	3,000
Total income	1,63,000
Less
Retirement plan contribution	4,000
AGI	1,59,000
Less
Personal exemption	4,050
Itemized deduction	11,000
Taxable income	1,43,950