ACC 330 Final Project Two Tax Planning Template
Dan plans to reduce his work schedule and work only half-time for WJJJ in 2017. He has been writing songs for several years and wants to devote more time to developing a career as a songwriter. Because of the uncertainty in the music business, however, he would like you to make all computations assuming that he will have no income from songwriting in 2017. To make up for the loss of income, Freida plans to increase the amount of time she spends selling real estate. She estimates that she will be able to earn $90,000 in 2017.
Assume that:
Complete the following multiple choice questions regarding whether the Butlers will have more or less disposable income (after federal income tax) in 2017.
Question 1:
There will be a net reduction in salary and wages of $___________________.
My answer selection is: __________
Question 2:
The net reduction in salary and wages will also result in a decrease of the ___________________.
My answer selection is: __________
Question 3:
The net reduction in the Butlers’ after-tax cash flow will be approximately _______________.
My answer selection is: __________