Mr and Mrs Brock own a bakery Their marginal tax
Mr. and Mrs. Brock own a bakery. Their marginal tax rate on the bakery’s income is 28 percent. The Brocks’ 17-year-old daughter Megan works in the bakery after school and on weekends. This year, Megan earned $9,784 of wages, which was her only in-come. The Brocks claim Megan as a dependent on their tax return.
a. Compute Megan’s income tax this year.
b. Compute the Brock family’s income tax savings from Megan’s employment.
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