Students are required to show their work and justify their answers with explanations to earn full credit Use the 2016 marginal rates in TABLE 8.1 to calculate the federal tax owed by a single man with one dependent
whose gross income, adjustment, deductions, and credits are given below;
Gross income : $70,000
Adjustment : $2500
Deductions : $1000 charitable contributions
$1500 theft loss

Tax credit : $500

Find the adjusted gross income ( 2points)
Identify the Standard Deduction ( 2points)
Calculate the itemized deduction ( 2points)
Find the taxable income ( 2points)
Find the federal income tax owed ( 2points)