1. Calculate Tax Liability. What would be the tax liability for a single taxpayer who has a gross income of $39,700?
2. Marginal Tax Rate. What would be the marginal tax rate for a single person who has a taxable income of (a) $40,210, (b) $47,800, (c) $56,100, and (d) $90,230?
3. Determine Tax Liability. Find the tax liabilities based on the taxable income of the following people: (a) married couple, $74,125; (b) married couple, $53,077; (c) single person, $27,880; (d) single person, $59,000.
4. Use Tax Rate Schedule. Benjamin Addai determined the following tax information: gross salary, $60,000; interest earned, $90; IRA contribution, $1000; personal exemption, $3950; and itemized deductions, $5900. Calculate Benjamin’s taxable income and tax liability filing single.
5. Use Tax Rate Schedule. Samual Clark determined the following tax information: salary, $144,000; interest earned, $2000; qualified retirement plan contribution, $7000; personal exemption, $3950; itemized deductions, $10,000. Filing single, calculate Samual’s taxable income and tax liability.
6. Review Figure on page 107 and comment on the logic of how different segments of Victoria’s income is taxed.