David and Ruby are engaged and plan to get married. During 2022, David is a full-time student and earns $5,800 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and has wages of $70,400.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
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Problem 3-42 (Algorithmic) (LO. 5, 6, 9)
David and Ruby are engaged and plan to get married. During 2022, David is a full-time student and earns $5,800 from a part-time job.
With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and has wages
of $70,400.
Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero,
enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar.
a. Compute the following:
Gross income and AGI
Standard deduction (single)
Taxable income
Income tax
David
Filing Single
5,800
12,950
0
Ruby
Filing Single
70,400
12,950
57,450
Transcribed Image Text:Problem 3-42 (Algorithmic) (LO. 5, 6, 9) David and Ruby are engaged and plan to get married. During 2022, David is a full-time student and earns $5,800 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and has wages of $70,400. Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar. a. Compute the following: Gross income and AGI Standard deduction (single) Taxable income Income tax David Filing Single 5,800 12,950 0 Ruby Filing Single 70,400 12,950 57,450
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