FM-Fall Final Review #2

Jake gets a job offer which pays $16 an hour for a 40 hour workweek. Annual benefits include $4,000 for health insurance, $1,000 for dental insurance, and $2,000 for tuition reimbursement. Job expenses will be $100 monthly for parking. What is the net ANNUAL value of the job?

• $38,900

• $39,800

• $39,000

• $39,080

Bob earned $44,300 in salary last year and $3,200 in interest income from investments. He also made a $4,000 contribution to a retirement plan that is a valid adjustment to gross income. What is Bob’s adjusted gross income?

• $43,500

• $43,000

• $45,300

• $54,300

Yvette reports $42,000 in adjusted gross income on her federal tax return. She also claims a standard deduction of $12,200.00. What is her taxable income?

• $34,900

• $29,800

• $23,000

• $28,900

Georgia reports $19,600 in taxable income on her federal income tax return. The amount of her deductions and exemptions total $17,500. What is her adjusted gross income?

• $37,100

• $31,700

• $37,300

• $31,800

Diedra bought a house for $69,900 and sold it three years later for $72,200. Assuming a capital gains tax rate of 15%, what is the amount Diedra owes?

• $354

• $534

• $543

• $345

Assume the Social Security tax rate for employees is 6.2% and the Medicare tax rate is 1.45%. Jay is self-employed and earns $53,000. What is his self-employment tax?

• $8,908

• $8,109

• $8,091

• $9,801

Manny deposits checks for $675.44, $100, and $45.89 in his checking account. He also deposits $23.44 in cash and coin. How much is his net deposit?

• $877.44

• $874.77

• $$844.77

• $847.47

Cynthia deposits a $436.78 check into her savings account but wants $60.00 returned in cash. How much is her net deposit?

• $376.78

• $786.78

• $387.98

• $456.09

Joe currently has a checking account balance of $1,209.65. He writes a $725.00 check to pay his rent and a $76.45 check for his phone bill. What is his new balance?

• $834.89

• $408.20

• $804.30

• $435,89

Moe deposits $5,000 in his savings account which earns 3.5% simple interest. What is his balance in one year?

• $5,175

• $7,534

• $5,789

• $5,345