David and Daphne are married and have no children. David is a police sergeant who earns $65,000 this year, and Daphne is a registered nurse who earns $75,000. They earn no investment income this year, but they did receive a $10,000 gift from Daphne's mom. See § 102(a). David and Daphne file a joint return and take the Standard Deduction.

 

a. What is Daphne's and David's Adjusted Gross Income (AGI) and Taxable Income for this year?  

 

b. What is Daphne's and David's marginal tax rate?  

 

c. Their effective tax rate (using AGI)?

Answer rating: 100% (QA)

a To calculate the AGI and taxable income we first need to determine their total income and deductio... View the full answer