Question: This problem is an exercise in computing average and marginal tax rates. The objective is to understand the difference between average and marginal rates and

This problem is an exercise in computing average and marginal tax rates. The objective is to understand the difference between average and marginal rates and further understand the effects of exemptions, deductions and credits on those rates. It is best to use a spreadsheet program such as Microsoft EXCEL to complete this exercise. If you do not know how to use such software, you may compute the exercise using a calculator or by hand.

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