The 2009-2013 taxable earnings of Peter & Son Plumbers were $57,000, $64,000, S66,500, $75,250, and $79,350,...

 

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The 2009-2013 taxable earnings of Peter & Son Plumbers were $57,000, $64,000, S66,500, $75,250, and $79,350, respectively. Use the tax schedules in Table 2.1 to perform the following:a. Over the five years, the taxable carnings have increased. Calculate the tax liability, and describe the implication of the earnings increase on the tax liability b. What is the relationship between the taxable earnings and the average tax rate for the 2009-2013 taxable earnings Tax Calculation Range of taxable income Base Tax Marginal rate x amount over base bracket 0-50,000 0 15% x amount over 0 7500 13750 22250 25% x amount over 50,000 34% x amount over 75,000 39% x amount over 100,000 113900 34% x amount over 335,000 3400000 35% x amount over 10,000,000 5150000 38% x amount over 15,000,000 6416667 35% x amount over 18.333.333 50,000-75,000 75,000-100,000 100,000-335,000 335,000-10,000,000 10,000,000-15,000,000 15,000,000-18,333,333 over 18.333.333 The 2009-2013 taxable earnings of Peter & Son Plumbers were $57,000, $64,000, S66,500, $75,250, and $79,350, respectively. Use the tax schedules in Table 2.1 to perform the following:a. Over the five years, the taxable carnings have increased. Calculate the tax liability, and describe the implication of the earnings increase on the tax liability b. What is the relationship between the taxable earnings and the average tax rate for the 2009-2013 taxable earnings Tax Calculation Range of taxable income Base Tax Marginal rate x amount over base bracket 0-50,000 0 15% x amount over 0 7500 13750 22250 25% x amount over 50,000 34% x amount over 75,000 39% x amount over 100,000 113900 34% x amount over 335,000 3400000 35% x amount over 10,000,000 5150000 38% x amount over 15,000,000 6416667 35% x amount over 18.333.333 50,000-75,000 75,000-100,000 100,000-335,000 335,000-10,000,000 10,000,000-15,000,000 15,000,000-18,333,333 over 18.333.333

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