Problem $1-49($LO $1-3,$ LO $1-5)($Algo$)$

Song earns $$192,500$ taxable income as an interior designer and is taxed at an average rate of $20$ percent $($i$.$e$.,$ $$38,500$ of tax$).$

Required:

a$.$ If Congress increases the income tax rate such that Song's average tax rate increases from $20$ percent to $25$ percent, how much more income tax will she pay assuming that the income effect is descriptive?

Note: Round your intermediate calculations and final answer to $2$ decimal places.

b$.$ If the income effect is descriptive, the tax base and the tax collected will increase.

Complete this question by entering your answers in the tabs below.

Required $A$

If Congress increases the income tax rate such that Song's average tax rate increases from $20$ percent to $25$ percent, how much more income tax will she pay assuming that the income effect is descriptive?

Note: Round your intermediate calculations and final answer to $2$ decimal places.

Additional income tax