ACCT 2020: Chapters 7, 10, and 11

Marcy, a single taxpayer, has wage income of $75,000. Marcy also has a short-term capital loss of $5,000, a short-term capital gain of $2,000, and a long-term capital gain of $4,000. What is Marcy's AGI for 2025?

• $72,000

• $76,000

• $77,000

• $80,000

Unused capital losses in any one year can be carried forward to offset future short-term or long-term gains.

• True

• False

John is single and is paid $1,498.50 per week, with no dependents. What is the amount of federal income tax withheld from Sergio's gross wages for the week using the Percentage Method Tables for Automated Payroll Systems (opens in a new tab)? From W-4 is not checked.

Remember for percentage method to deduct $8,600 for single taxpayer.

• $194.81

• $226.98

• $190.59

• $230.23

Sally is single, has no dependents, and is paid $1,470 biweekly. What is the amount of federal income tax withheld from Sally's wages for the week using the Wage Bracket Method Tables for Manual Payroll Systems (opens in a new tab) with Forms W-4 from 2020 or Later?

• $32

• $61

• $96

• $99

David earned $150,395 during 2025. How much will the employer withhold from David's pay, in total, for FICA taxes?

• $11,505.22

• $9,324.49

• $10,527.65

• $2,180.73

Cindy works for Company X and earned $66,500 for the entire year 2025. How much in FUTA tax is the employer required to withhold in Cindy's name? Assume that the employer receives the maximum credit for state unemployment taxes?

• $420.00

• $455.00

• $42.00

• $399.00

A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

• True

• False

A participant in a 401(k) plan under the age of 50 may contribute up to what amount in 2025?

• $6,600

• $23,500

• $60,500

• $14,400

Angie is single and age 32. She reported AGI of $81,300 in tax year 2025. She is an active participant in her employer’s pension plan. What is the maximum deductible IRA contribution she can make for 2025?

• $5,390

• $1,610

• $7,000

• $5,100

Retirement accounts include traditional IRAs, Roth IRAs, Keoghs, and Coverdell Education Savings Accounts.

• True

• False