Warren income tax liability


Problem:

Warren, age 26, is single. Warren's son lives with the child's mother, who has waived her right to claim the child. Warren's adjusted gross income for 2013 is $32,875. Included in this total is $5,000 of long-term capital gain from the sale of an asset held over 12 months and $1,000 of taxable long-term capital gain from the sale of a collectible. Warren claims the standard deduction and two personal exemptions. Warren's income tax liability for 2013 is

A. $1,650

B. $2,400

C. $3,000

D. $3,180

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Accounting Basics: Warren income tax liability
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