4. Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was $375,000. (a) What is their federal tax liability? (b) What is their marginal tax rate? (c) What is their average tax rate? Married couples Filing Joint Returns If Your Taxable Income is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-5326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 You Pay This Amount on the Base of the Bracket $ 0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracker 10.0% 11.5 17.1 20.4 22.8 26.9 37.0

4. Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was $375,000. (a) What is their federal tax liability? (b) What is their marginal tax rate? (c) What is their average tax rate? Married couples Filing Joint Returns If Your Taxable Income is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-5326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 You Pay This Amount on the Base of the Bracket $ 0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracker 10.0% 11.5 17.1 20.4 22.8 26.9 37.0

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 8P: PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where...

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