Sheila and Joe Wells are married with two dependent children. During 2019, they have gross income of $159,800, deductions for AGI of $5,500, itemized deductions of $25,000 and tax credits of $2,000. The Wells' had $22,000 withheld by their employer for federal income tax. They have a tax (due/refund) of $

They have a tax due of $6,453.36

Explanation:

Gross income = $159,800

Deductions for AGI = $5,500

Itemized deductions = $25,000

Tax credits = $2,000

Federal income tax = $22,000

AGI = gross income - deductions for AGI

AGI  = 159800 - 5500

AGI  = 154300

Taxable income  = AGI  - itemized deductions

Taxable income  =  154300 - 25000

Taxable income  = $1,29,300‬

Using tax table of 2019

Gross tax = 32170 + ( 129300 - 88359 ) × 24%

Gross tax = $17,546.64‬

Tax due = gross tax  - tax credit - withholding

Tax due is = 17546.64 - 2000 - 22000 = - 6453.36

Tax due is = $6,453.36

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answer; yield to maturity;