This paper will analysis the simulation about "Analyzing Income Tax Implications" Cycle III and IV. Although some parts of the simulation were very fundamental in essence it still provided many examples that enforced the decision-making process. These two cycles present scenarios regarding computing applicable deductions to arrive at net taxable income and applying the tax rate to taxable income to compute income tax. Within this paper, I will be describing the two cycle and the outcome results.

For cycle III of the simulation, Betsy and Ronald Brown are planning for the future. They need advise on the new house they should select and on whether the vehicle Betsy wants should be leased or purchased. The IRS has specific tax guides for moving ... Showed first 120 words of 730 Size (words) ...

... Continuing with another 115 out of 730 Size (words) ...in advance, only what was paid in the current year. I was on target with all my decisions.

For cycle IV of the simulation, Kevin Allen has a property transaction. I need to determine the capital gain on the sale of his house and whether he should sell his stock now or at another time. I used the textbook and the information tabs provided in the simulation to help me determine in my decision-making. I had trouble with this one, and I came up with a few wrong answers. I should have reconsidered how I came up with the capital gains tax on the house and that Kevin should sell his stocks now. His net ...Essay still continues 100 more words...