During the year just ended, Jean Sanchez’s taxable income of \($48,000\) was twice as large as her younger sister Rachel’s taxable income of \($24,000.\) Use the tax rate schedule in Table 17.1 to answer the following questions with regard to the Sanchez sisters, who are both single.

a. Calculate each sister’s tax liability.

b. Determine 

(1) the marginal tax rate 

(2) the average tax rate for each sister.

c. Do your findings in part b demonstrate the progressive nature of income taxes? Explain.

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TABLE 17.1 FEDERAL INCOME TAX RATES AND BRACKETS FOR INDIVIDUAL AND JOINT RETURNS (FOR TAXES DUE BY APRIL 15, 2015) Tax Rates 10.0% 15.0% Individual Returns $0 to $9,075 $9,076 to $36,900 25.0% $36,901 to $89,350 28.0% 33.0% 35.0% 39.6% Over $406,751 $89,351 to $186,350 $186,351 to $405,100 $405,101 to $406,750 Taxable Income Joint Returns $0 to $18,150 $18,151 to $73,800 $73,801 to $148,850 $148,851 to $226,850 $226,851 to $405,100 $405,101 to $457,600 Over $457,061