Problem $1-35($LO $1-3)($Algo$)$

Chuck, a single taxpayer, earns $$77,000$ in taxable income and $$12,100$ in interest from an investment in City of Heflin bonds. $($Use the U$.$S$.$ tax rate schedule.$)$

Required:

a$.$ If Chuck earns an additional $$40,000$ of taxable income, what is his marginal tax rate on this income?

b$.$ What is his marginal rate if$,$ instead, he had $$40,000$ of additional deductions?

Note: For all requirements, do not round intermediate calculations. Round percentage answers to $2$ decimal places.

a$.$ Marginal tax rate

b$.$ Marginal tax rate

$\left[\begin{array}{cc}?& \%\end{array}\right]$

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Individuals

Schedule X$-$Single

$\backslash$table$[[$If taxable income is over:,But not over:,The tax is:$],[$$$0,$$$11,600,10\%$ of taxable income$],[$$$11,600,$$$47,150,$$$1,160$ plus $12\%$ of the excess over $$11,600$