A newly electe
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A newly elected government removed the cap on social security
contributions and added a new tax bracket, shown in the schedule below.
Tax Schedule
SSS
$
$
$
$400
$
142,800.00 $
400,000.00
$400,000
Which taxable income would have the lowest average tax rate
considering only this schedule?
$142,800
Bracket
(0)
$142,801
$399,900
142,800.00
400,000.00
Rate
(1)
12.40%
0.00%
12.40%
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