a) Build this table in Excel. Have the user plug in their salary in a cell. In another cell, use a lookup function to determine and output the marginal tax rate, assuming the person is single. Note: the marginal tax rate is defined as the tax rate that applies to the last unit of the tax base. For example, if your income was $25,000, your marginal tax rate is 12%. Your lookup function should be flexible enough to output the correct answer for a multitude of different salaries. b) Do the same but this time assume the person is married filing jointly. c) Build a lookup function that calculates the amount of tax owed for a single person, for any given salary. For example, if your income is $25,000 the tax owed is: (9950 * 10%) = $995 (25,000 - 9950) * .12 = $1,806 = $2,801 total tax owed. ease show formulas
a) Build this table in Excel. Have the user plug in their salary in a cell. In another cell, use a lookup function to determine and output the marginal tax rate, assuming the person is single. Note: the marginal tax rate is defined as the tax rate that applies to the last unit of the tax base. For example, if your income was $25,000, your marginal tax rate is 12%. Your lookup function should be flexible enough to output the correct answer for a multitude of different salaries. b) Do the same but this time assume the person is married filing jointly. c) Build a lookup function that calculates the amount of tax owed for a single person, for any given salary. For example, if your income is $25,000 the tax owed is: (9950 * 10%) = $995 (25,000 - 9950) * .12 = $1,806 = $2,801 total tax owed. ease show formulas
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Accounting
Below are the 2021 tax brackets for single American taxpayers:
Marginal Tax Rate
For Single Individuals
For Married Individuals Filing Joint Returns
10%
$0 to $9,950
$0 to $19,900
12%
$9,951 to $40,525
$19,901 to $81,050
22%
$40,526 to $86,375
$81,051 to $172,750
24%
$86,376 to $164,925
$172,751 to $329,850
32%
$164,926 to $209,425
$329,851 to $418,850
35%
$209,426 to $523,600
$418,851 to $628,300
37%
$523,601 or more
$628,301 or more
a) Build this table in Excel. Have the user plug in their salary in a cell. In another cell, use a lookup
function to determine and output the marginal tax rate, assuming the person is single. Note: the
marginal tax rate is defined as the tax rate that applies to the last unit of the tax base. For example, if
your income was $25,000, your marginal tax rate is 12%. Your lookup function should be flexible
enough to output the correct answer for a multitude of different salaries.
b) Do the same but this time assume the person is married filing jointly.
c) Build a lookup function that calculates the amount of tax owed for a single person, for any given salary.
For example, if your income is $25,000 the tax owed is:
(9950 * 10%) = $995
(25,000 - 9950) * .12 = $1,806
= $2,801 total tax owed.
Please show formulas
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