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 $3,000. What is Marcy's AGI for 2022?

• $72,000

• $75,000

• $77,000

• $80,000

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

• True

• False

John is single and receives gross wages of $1,498.50 per week. The employer uses the percentage method tables for automate payroll systems to calculate all employee federal income tax withholding. John has no dependents and does not have additional withholding taken out on the 2022 Form W-4. Assume that John has only one job or that step 2 of Form W-4 is not checked. What is the amount of income tax withheld on John's gross wages for the week?

• $194.81

• $226.98

• $190.59

• $230.23

Sally is single and is paid $735 per week. What is the amount of federal income tax withheld on Sally's gross wages for the week? The employer uses the Wage Bracket Method Tables for Manual Payroll Systems.

• $24

• $23

• $54

• $55

David earned $150,395 during 2022. How much will the employer withhold from David's pay, in total, for FICA taxes?

• $11,294.73

• $11,474.22

• $10,961.73

• $11,252.75

Cindy works for Company X and earned $66,500 for the entire year 2022. 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 2022?

• $6,600

• $20,500

• $60,500

• $14,400

Angie is single and age 32. She reported AGI of $71,300 in tax year 2022. She is an active participant in her employer’s pension plan. What is the maximum deductible IRA contribution she can make for 2022?

• $4,020

• $0

• $5,860

• $3,030

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

• True

• False