Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in
Fantastic news! We've Found the answer you've been seeking!
Question:
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round your answers to 2 decimal places.)
a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
b.What is his marginal rate if, instead, he had $40,000 of additional deductions?
c. What is his average tax rate?
d. What is his effective tax rate?
e.How much federal tax will he owe?
Transcribed Image Text:
If taxable income is But not over: over: $ 0 $9,275 $ 9,275 $37,650 $37,650 $91,150 $91,150 $190,150 $190,150 $413,350 $413,350 $415,050 $415,050 If taxable income is over: Schedule X-Single - $466,950 But not over: $ 0 $18,550 $ 18,550 $75,300 2016 Federal Tax Rate Schedule Schedule Y-1-Married Filing Jointly of Qualifying Widow(er) - The tax is: 10% of taxable income $927.50 plus 15% of the excess over $9,275 $5,183.75 plus 25% of the excess over $37,650 $18,558.75 plus 28% of the excess over $91,150 $46,278.75 plus 33% of the excess over $190,150 $119,934.75 plus 35% of the excess over $413,350 The tax is: 10% of taxable income $1,855.00 plus 15% of the excess over $18,550 $ 75,300 $151,900 $10,367.50 plus 25% of the excess over $75,300 $151,900 $231,450 $29,517.50 plus 28% of the excess over $151,900 $231,450 $413,350 $51,791.50 plus 33% of the excess over $231,450 $413,350 $466,950 $111,818.50 plus 35% of the excess over $413,350 $130,578.50 plus 39.6% of the excess over $466,950 $120,529.75 plus 39.6% of the excess over $415,050 If taxable income is But not over: over: $ 0 $13,250 $13,250 $50,400 $ 50,400 $130,150 Schedule Z-Head of Household $6,897.50 plus 25% of the excess over $50,400 $26,835.00 plus 28% of the excess over $130,150 $49,417.00 plus 33% of the excess over $210,800 $413,350 $441,000 $116,258.50 plus 35% of the excess over $413,350 $125,936.00 plus 39.6% of the excess over $441,000 $130,150 $210,800 $210,800 $413,350 $441,000 If taxable income is over: Schedule Y-2-Married Filing Separately The tax is: 10% of taxable income $1,325.00 plus 15% of the excess over $13,250 But not over: $233,475 The tax is: 10% of taxable income $927.50 plus 15% of the excess over $9,275 $ 37,650 $ 75,950 $5,183.75 plus 25% of the excess over $37,650 $75,950 $115,725 $14,758.75 plus 28% of the excess over $75,950 $115,725 $206,675 $25,895.75 plus 33% over $115,725 $206,675 $233,475 $55,909.25 plus 35% of the excess over $206,675 $65,289.25 plus 39.6% of the excess over $233,475 $ 0 $9,275 $ 9,275 $37,650 the excess If taxable income is But not over: over: $ 0 $9,275 $ 9,275 $37,650 $37,650 $91,150 $91,150 $190,150 $190,150 $413,350 $413,350 $415,050 $415,050 If taxable income is over: Schedule X-Single - $466,950 But not over: $ 0 $18,550 $ 18,550 $75,300 2016 Federal Tax Rate Schedule Schedule Y-1-Married Filing Jointly of Qualifying Widow(er) - The tax is: 10% of taxable income $927.50 plus 15% of the excess over $9,275 $5,183.75 plus 25% of the excess over $37,650 $18,558.75 plus 28% of the excess over $91,150 $46,278.75 plus 33% of the excess over $190,150 $119,934.75 plus 35% of the excess over $413,350 The tax is: 10% of taxable income $1,855.00 plus 15% of the excess over $18,550 $ 75,300 $151,900 $10,367.50 plus 25% of the excess over $75,300 $151,900 $231,450 $29,517.50 plus 28% of the excess over $151,900 $231,450 $413,350 $51,791.50 plus 33% of the excess over $231,450 $413,350 $466,950 $111,818.50 plus 35% of the excess over $413,350 $130,578.50 plus 39.6% of the excess over $466,950 $120,529.75 plus 39.6% of the excess over $415,050 If taxable income is But not over: over: $ 0 $13,250 $13,250 $50,400 $ 50,400 $130,150 Schedule Z-Head of Household $6,897.50 plus 25% of the excess over $50,400 $26,835.00 plus 28% of the excess over $130,150 $49,417.00 plus 33% of the excess over $210,800 $413,350 $441,000 $116,258.50 plus 35% of the excess over $413,350 $125,936.00 plus 39.6% of the excess over $441,000 $130,150 $210,800 $210,800 $413,350 $441,000 If taxable income is over: Schedule Y-2-Married Filing Separately The tax is: 10% of taxable income $1,325.00 plus 15% of the excess over $13,250 But not over: $233,475 The tax is: 10% of taxable income $927.50 plus 15% of the excess over $9,275 $ 37,650 $ 75,950 $5,183.75 plus 25% of the excess over $37,650 $75,950 $115,725 $14,758.75 plus 28% of the excess over $75,950 $115,725 $206,675 $25,895.75 plus 33% over $115,725 $206,675 $233,475 $55,909.25 plus 35% of the excess over $206,675 $65,289.25 plus 39.6% of the excess over $233,475 $ 0 $9,275 $ 9,275 $37,650 the excess
Expert Answer:
Answer rating: 100% (QA)
c d e Answer a Explanation Answer b Explanation 2673 Ma... View the full answer
Related Book For
Advertising and Promotion An Integrated Marketing Communications Perspective
ISBN: 978-1260152302
11th Edition
Authors: George E Belch, Michael A Belch
Posted Date:
Students also viewed these accounting questions
-
As a securities analyst you have been asked to review a valuation of a closely held business, Wigwam Autoparts Heaven, Inc. (WAH), prepared by the Red Rocks Group (RRG). You are to give an opinion on...
-
You have been asked to review the December 31, 2011, balance sheet for Champion Cleaning. After completing your review, you list the following three items for discussion with your superior: 1. An...
-
As an intern for Coca-Cola, you have been asked to help with developing an IMC budget. The objective of the IMC strategy is to raise Diet Coke's market share by 2 percent in the United States in the...
-
The Apache NetBeans IDE is an open-source integrated development environment, and it supports development of all Java application types, which include . a. Java desktop applications b. Mobile and Web...
-
Lindsay Shaw is a partner in a Canadian partnership. On April 30th of the current year she transferred title of a piece of land that she held as a capital asset to the partnership in exchange for...
-
On average, 30-minute television sitcoms have 22 minutes of programming (CNBC, February 23, 2006). Assume that the probability distribution for minutes of programming can be approximated by a uniform...
-
Comment on why the proposed changes to sales processes are necessary. Also, which changes would you recommend in terms of their: (a) selling activities? (b) sales value proposition?
-
Presented below is a combined single-step income and retained earnings statement for Hardrock Mining Co. for 2017. Statement of Income and Retained Earnings for the Year Ended December 31, 2017 ($ in...
-
On January 1 , 2 0 2 4 , Granger Corporation had 7 9 , 0 0 0 common shares, recorded at $ 5 4 5 , 1 0 0 , and retained earnings of $ 1 million. During the year, the following transactions occurred:...
-
Fun Silly Toys (FST) produces a number of space themed toys (e.g., astronaut action figures). One of the newer divisions at FST is the board game division, which currently produces and sells one...
-
For the following given verilog code provide the circuit diagram in terms of specified gates. Also provide the boolean expressions as per the code without simplifications module example13 (A, B, C,...
-
Soundbar Enterprises is a manufacturer of soundbars. The firm has two production departments: Speakers and Assembly. The Speaker department can sell speakers to external customers for $80 per unit....
-
Use the Gauss-Jordan method to solve the following system of equations. 3x 4y+4z = 4 3x+5yz=9 12x7y+11z = 21
-
The Committee of Sponsoring Organizations (COSO) was established by the Treadway Commission to work on a common definition for internal control. The Control Objectives for Information and Related...
-
Multiply. (4x+5y)(3x+7y-5)
-
1)Define budgetary slack and how it can be avoided in managerial accounting. 2)Define authoritative and participative budgeting. 3)what one would you recommend be used? 4)what alternatives are...
-
Suppose Biogen stock has a beta of 0.6. Assume a risk-free interest rate of 2.5% and a market risk premium of 5.5%. What is the expected return of Biogen stock based on the Capital Asset Pricing...
-
Define relevant costs and discuss: (1) whether all future costs are relevant for decision making and (2) whether variable costs are always relevant and fixed costs are always irrelevant
-
The text discusses the decision by the California Supreme Court in the Nike case to view statements about a companys labor policies or operations in ads or press releases as commercial, rather than...
-
Explain why communications measures may be better to use than sales or market share objectives when developing the IMC plan.
-
Some companies test their commercials in rough formats described in the chapter. Others only test the commercials in finished form. Discuss some of the advantages and disadvantages of conducting...
-
Prove that van der Waals constants \((a, b)\) can be expressed in terms of critical temperature and pressure as follows: a = 27 R 2 T 2 c 64 P c b = R T c 8 P c a = 27 R 2 T c 2 64 P c b = R T c 8 P c
-
Show that where \[ \left(\frac{\partial U}{\partial V} ight)_{T}=\frac{T \beta}{\kappa}-P \] \(\beta=\) Coefficient of volume expansion \(\kappa=\) Isothermal compressibility.
-
Derive Maxwell's relations.
Study smarter with the SolutionInn App