PFIN 2nd Edition by Lawrence Gitman ,Michael Joehnk,Randall Billingsley

Exercise 1

Denise Smith is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $45,000 as a sales assistant for Custom Business Solutions: $3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of $142. Estimate her taxable income, tax liability, and tax refund or tax owed.