Question: Question 1 Problem 1-35 (LO 1-3) (Static) Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City

Question 1

Problem 1-35 (LO 1-3) (Static)

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)

Required:

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

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 %

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