Student Name |
Nicky locklear |
Course and Section Number | Program of Study |
FIN 1103 | finance |
Week 3 Individual Work
Perform Time Value Money Calculations
Assignment Instructions |
To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. |
Save and Submit to Dropbox |
1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week3.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 3: Individual Work basket in the Dropbox. |
Objective: Analyze the benefits of making tax planning part of the overall money management strategy
To prepare for your Individual Work this week, review the “Eight Steps in Calculating Your Income Taxes” section starting on page 109.
Complete this worksheet by answering the following problems which are taken from the Financial Planning Case 1 on page 135 of your textbook.
Financial Planning Case 1: The Johnsons Calculate Their Income Taxes. |
Several years have gone by since Harry and Belinda graduated from college and started their working careers. They both earn good salaries. They believe that they are paying too much in federal income taxes. The Johnsons’ total income last year included Harry’s salary of $63,000 and Belinda’s salary of $84,000. She contributed $3000 to her 401 (k) for retirement. She earned $400 in interest on savings and checking and $3000 interest income from the trust that is taxed in the same way as interest income from checking and savings accounts. Harry contributed $3000 into a traditional IRA. |
a. What is the Johnsons’ reportable gross income on their joint tax return? |