In order to copy the contents of the data table below into a spreadsheet: perform the following:
Question:
perform the following:a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes:
$10,500;
$75,700;
$322,000;
$498,000;
$1.2
million;
$1.7
million; and
$1.9
million.b. Plot the average tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). What generalization can be made concerning the relationship between these variables?
a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes:
$10,500;
$75,700;
$322,000;
$498,000;
$1.2
million;
$1.7
million; and
$1.9
million.Part 2(Round dollars to the nearest cent and round percentages to one decimal place.)
Part 4(Round dollars to the nearest cent and round percentages to one decimal place.)
Part 6(Round dollars to the nearest cent and round percentages to one decimal place.)
Part 9b. Plot the average tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). (Select the best answer below.)
A.
00.511.50510152025303540Income ($ millions)Average Tax Rate (%)
x y graph
B.
00.511.50510152025303540Income ($ millions)Average Tax Rate (%)
x y graph
C.
00.511.50510152025303540Average Tax Rate (%)Income ($ millions)
x y graph
D.
02500.511.5Income ($ millions)Average Tax Rate (%)
x y graph
Part 10What generalization can be made concerning the relationship between these variables? (Select the best answer below.)
A.
Under the new tax law, the partnership's average tax rate remains 37% once income is more than $500,000.
B.
Under the new tax law, the partnership's average tax rate gets closer to 37% as income goes lower.
C.
Under the new tax law, the partnership's average tax rate gets closer to 37% as income goes higher.
D.
Under the new tax law, the partnership's average tax rate gets closer to 10% as income goes higher.
Integrated Accounting
ISBN: 978-1285462721
8th edition
Authors: Dale A. Klooster, Warren Allen, Glenn Owen