5. Understanding marginal and average tax ratesConsider the economy of Cocoland, where citizens consume only coconuts. Assume that coconuts are priced at $1 each. The government has devisedthe following tax plans:Plan APlan B• Consumption up to 1,000 coconuts is taxed at 50%.• Consumption up to 2,000 coconuts is taxed at 15%.• Consumption higher than 1,000 coconuts is taxed at 20%.• Consumption higher than 2,000 coconuts is taxed at 60%.Use the Plan A and Plan B tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at theconsumption levels of 300 coconuts, 1,200 coconuts, and 3,000 coconuts, respectively.Consumption LevelPlan APlan B(Quantity of coconuts) Marginal Tax RateAverage Tax Rate Marginal Tax RateAverage Tax Rate(Percent)(Percent)(Percent)(Percent)3001,2003,000

Calculation of marginal tax rate and average tax rate are as follows:

Answered: 5. Understanding marginal and average…

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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1.
Federal income taxes have a significant effect on businesses and investors, and affect the personal decisions of every taxpayer in the United States. If we consider that the tax rates of corporations and individuals can reach up to 37% of contributions, certainly, all transactions have their tax impact. Argument about Internal Revenue Services of USA. Do you think the tax filing requirements that the IRS demands of taxpayers is fair? Why?
Lefty Inc. sells its products to customers residing in Country X and Country Y. Both foreign jurisdictions have a 20 percent corporate income tax. This year, Lefty made more than $30 million of sales in both Country X and Country Y. However, it paid income tax only to Country X. What factors could account for this result?
Scenario: You have just been hired by the country of "Shorelinia" to create a tax system. Your tax system must collect at least $1,000 billion in revenue. You have three taxes to choose from; income tax, sales tax, and payroll tax. c) You must decide the SalesTax. For reference, state and local sales taxes around Seattle add up to approximately 10%, some of the highest in America. In the USA, there is no national sales tax, although a number of countries have them, also known as VATs (value added taxes) or GSTs (general sales taxes.) Sales tax revenue (in billions of $) at various tax rates 0% 2% 4% 6% 8% 10% 12% revenue $0 $60 $120 $180 $240 $300 $360 The sales tax rate in Shorelinia will be _______%. (fill in space below) d) Sales tax revenue Look up the tax revenue generated by your chosen tax rate in the table above. The sales tax revenue will be $_______billion. (fill in space below) e) Payroll Tax rate In the country of Shorelinia, the payroll tax is…
The interest tax shield year 1 is ______$ million (Round to three decimal places) The interest tax shield year 2 is ______$ million (Round to three decimal places) The interest tax shield year 3 is ______$ million (Round to three decimal places) The interest tax shield year 4 is ______$ million (Round to three decimal places) The interest tax shield year 5 is ______$ million (Round to three decimal places)
Flatland Corp. harvested potatoes at a cost of FC 1,000,000 and sold them to Pot Corp. for FC 2,500,000. Pot Corp. sold the potatoes to its customers and received FC 4,000,000. If the national VAT is 20%, how much tax did Pot Corp. pay?
Suppose you are in the 33% income tax bracket. You own shares in Carefree Casinos, whose profits are taxed at a 25% rate. “Double taxation” means: A. Carefree pays 25% tax on before-tax profits, then another 25% tax is applied to its after-tax profits. B. Carefree pays 25% tax on its before-tax profits, then another 33% tax is applied to its after-tax profits. C. Carefree pays 25% tax on before-tax profit and 33% on its retained earnings, and you pay 33% tax on dividends which are distributed to you. D. Carefree pays 25% tax on before-tax profit but 0 tax on its retained earnings, and you pay 33% tax on dividends which are distributed to you. E. Carefree pays 25% tax on before-tax profit and 25% on its retained earnings, and you pay 33% tax on dividends which are distributed to you.
E4.3 (LO 1, 4) Financial Statement Worksheet data for Auburn Company are presented in E4.2. The owner did not make any additional investments in the business in April. Instructions Prepare an income statement, an owner's equity statement, and a classified balance sheet.
Please help me
2. Help me answer the given question. Do not round off answers while solving, instead just the final answer will be rounded off to one decimal places.
Michigan has a State Income Tax of 4.25%. Some states in the US, because of a revenue source, do not take State Income Tax out of the workers checks. List the states in the US that the workers in those states do not pay State Income Tax. I only want State Income Tax please! (this is accounting)
You own an a townhome with an assessed value of $184,600. The tax rate is $2.20 per $100 of assessed value. (Round your answers to the nearest cent.) propery tatx $4061.20 If the state offers a 4% discount for early payment, how much (in $) would the tax bill amount to if you paid early? If the state offers a 4% discount for early payment, how much (in $) would the tax bill amount to if you paid early?

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