Use the federal income tax rate schedule for a person filing a single return in 2018 shown in Exercise 23 to answer the following questions.

a) Lewis works as a waiter and paid $4541.50 in federal taxes in 2018. Determine Lewis’s taxable income.

b) Leticia works as an occupational therapist and paid $14,593.50 in federal taxes in 2018. Determine Leticia’s taxable income.

Data From Exercise 23:

The federal Income tax rate schedule for a person filing a single return in 2018 is shown below.

Transcribed Image Text:

Taxable Income Taxes $0-59,525 10% of taxable income $9,526-S38,700 $952.50 + 12% of the amount over $9,525 $38,701-$82,500 $4,453.50 + 22% of the amount over $38,700 $82,501–$157,500 $14,089.50 + 24% of the amount over $82,500 $157,501-$200,000 $32,089.50 + 32% of the amount over $157,500 $200,001-$500,000 $45,689.50 + 35% of the amount over $200,000 $500,001 or more $150,689.50 + 37% of the amount over $500,000