4.An individual made $85,000 for the year. Using the tax given , answer the following questions:A.What is this person's marginal tax rate?B.How much tax does this person owe?C.What is the effective tax rate? ### Individual TaxpayersThis table details the tax rates applicable to individual taxpayers based on their taxable income.#### Tax Brackets and Rates:1. **Income Range: $0 - $9,875** - **Tax Rate:** 10% of taxable income2. **Income Range: $9,876 - $40,125** - **Tax Calculation:** $987.50 plus 12% of the amount over $9,8753. **Income Range: $40,126 - $85,525** - **Tax Calculation:** $4,617.50 plus 22% of the amount over $40,1254. **Income Range: $85,526 - $163,300** - **Tax Calculation:** $14,605.50 plus 24% of the amount over $85,5255. **Income Range: $163,301 - $207,350** - **Tax Calculation:** $33,271.50 plus 32% of the amount over $163,3006. **Income Range: $207,351 - $518,400** - **Tax Calculation:** $47,367.50 plus 35% of the amount over $207,3507. **Income Range: Over $518,400** - **Tax Calculation:** $156,235 plus 37% of the amount over $518,400This table assists in determining the tax liabilities for individual taxpayers based on varying levels of income. Each bracket represents a range within which a taxpayer's income might fall, with a consistent method of tax calculation across the income spans.

A.) Marginal tax rate is the highest bracket rate an individual's taxable income falls into i.e. the…

4.An individual made $85,000 for the year. Using the tax given , answer the following questions: A.What is this person's marginal tax rate? B.How much tax does this person owe? C.What is the effective tax rate?

4.An individual made $85,000 for the year. Using the tax given , answer the following questions: A.What is this person's marginal tax rate? B.How much tax does this person owe? C.What is the effective tax rate?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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