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Would you prefer a fully taxable investment earning 11.3 percent or a tax-exempt investment earning 8.1 percent? (Assume a 24 percent tax rate.) Tax-exempt investment earning 8.1 percent. Taxable investment earning 11.3 percent. Allison has returned to school after five years out of the work force. She is taking one course at the local university for a cost of \\( \\$ 1,460 \\), To minimize her taxes, should she take a tuition and fees deduction or an education credit? (Assume a 15 percent tax rate.) (Assume the education credit will equal the entire cost of the course.) Tuition and fees deduction Education credit Reginald Sims deposits \\( \\$ 8,000 \\) each year in a tax-deferred retirement account. If he is in a 32 percent tax bracket, by what amount would his tax be reduced over a 15 -year time period? On December 30 , you make a \\( \\$ 4,800 \\) charitable donation. a. If you are in the 24 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) b. If you deposit that tax savings in a savings account for the next five years at 8 percent, what will be the future value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal places.) Julia Sims has \\( \\$ 28,000 \\) of adjusted gross income and \\( \\$ 4,480 \\) of medical expenses. She expects to itemize her tax deductions this year. The most recent tax year has a medical expenses floor of 10 percent. How much of a tax deduction for medical expenses will Julia be able to take? Using the tax table, determine the amount of taxes for the following situations: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A head of household with taxable income of \\( \\$ 58,000 \\). b. A single person with taxable income of \\( \\$ 36,200 \\). c. Married taxpayers filing jointly with taxable income of \\( \\$ 72,600 \\). Would you prefer a fully taxable investment earning 11.3 percent or a tax-exempt investment earning 8.1 percent? (Assume a 24 percent tax rate.) Tax-exempt investment earning 8.1 percent. Taxable investment earning 11.3 percent. Allison has returned to school after five years out of the work force. She is taking one course at the local university for a cost of \\( \\$ 1,460 \\), To minimize her taxes, should she take a tuition and fees deduction or an education credit? (Assume a 15 percent tax rate.) (Assume the education credit will equal the entire cost of the course.) Tuition and fees deduction Education credit Reginald Sims deposits \\( \\$ 8,000 \\) each year in a tax-deferred retirement account. If he is in a 32 percent tax bracket, by what amount would his tax be reduced over a 15 -year time period? On December 30 , you make a \\( \\$ 4,800 \\) charitable donation. a. If you are in the 24 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) b. If you deposit that tax savings in a savings account for the next five years at 8 percent, what will be the future value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal places.) Julia Sims has \\( \\$ 28,000 \\) of adjusted gross income and \\( \\$ 4,480 \\) of medical expenses. She expects to itemize her tax deductions this year. The most recent tax year has a medical expenses floor of 10 percent. How much of a tax deduction for medical expenses will Julia be able to take? Using the tax table, determine the amount of taxes for the following situations: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. A head of household with taxable income of \\( \\$ 58,000 \\). b. A single person with taxable income of \\( \\$ 36,200 \\). c. Married taxpayers filing jointly with taxable income of \\( \\$ 72,600 \\)

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