Ok Campbell, a single taxpayer, earns $400,000 in taxable income and $2.000 in interest from an...
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Ok Campbell, a single taxpayer, earns $400,000 in taxable income and $2.000 in interest from an investment in State of New York bonds, (Use the U.S. tax rate schedule) Required: a. How much federal tax will she owe? b. What is her average tax rate? c. What is her effective tax rate? d. What is her current marginal tax rate? Individuals Schedule X-Single If taxable income is over: But not over: $ 10,275 $ 41,775 $ 89,075 $ 170,050 $215,950 $ 539,900 S 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $215,950 $ 539,900 The tax is: 10% of taxable income $1,027.50 plus 12% of the excess over $10,275 $4,807.50 plus 22% of the excess over $41,775 $15,213.50 plus 24% of the excess over $89,075 $34,647.50 plus 32% of the excess over $170,050 $49,335.50 plus 35% of the excess over $215,950 $162,718 plus 37% of the excess over $539,900 Ok Campbell, a single taxpayer, earns $400,000 in taxable income and $2.000 in interest from an investment in State of New York bonds, (Use the U.S. tax rate schedule) Required: a. How much federal tax will she owe? b. What is her average tax rate? c. What is her effective tax rate? d. What is her current marginal tax rate? Individuals Schedule X-Single If taxable income is over: But not over: $ 10,275 $ 41,775 $ 89,075 $ 170,050 $215,950 $ 539,900 S 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $215,950 $ 539,900 The tax is: 10% of taxable income $1,027.50 plus 12% of the excess over $10,275 $4,807.50 plus 22% of the excess over $41,775 $15,213.50 plus 24% of the excess over $89,075 $34,647.50 plus 32% of the excess over $170,050 $49,335.50 plus 35% of the excess over $215,950 $162,718 plus 37% of the excess over $539,900
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SOLUTION To calculate Campbells federal tax liability we need to determine which tax bracket her tax... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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