55. Smith faces a progressive federal income tax structure such that the marginal tax rate Imposed on: the first $10,000 of income is 10%, the next $10,000 of income is 15%, the next $20,000 of income is 25%, and all additional income is 40%. In addition, she must pay 5% of her income in state income tax and 15% of her wage and salary income in federal payroll tax. Smith earns $70,000 per year in salary plus $10,000 per year in "unearned" income. What is her average tax rate when considering federal and state income taxes as well as federal payroll tax? a. 46.69% b. 49.375% C. 47.5% d. 40% se ma base

55. Smith faces a progressive federal income tax structure such that the marginal tax rate Imposed on: the first $10,000 of income is 10%, the next $10,000 of income is 15%, the next $20,000 of income is 25%, and all additional income is 40%. In addition, she must pay 5% of her income in state income tax and 15% of her wage and salary income in federal payroll tax. Smith earns $70,000 per year in salary plus $10,000 per year in "unearned" income. What is her average tax rate when considering federal and state income taxes as well as federal payroll tax? a. 46.69% b. 49.375% C. 47.5% d. 40% se ma base

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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My daughter earns a salary of $40,800 per year, payable monthly. She is married and claims four withholding allowances. What is her federal income tax? Gross monthly is $3400
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