Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate temized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable: Married Couples Filing Joint Returns If Your Taxable Income Is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 What is their marginal tax rate? O a. 12.0% O b. 35.0% O c. 24.0% O d. 32.0% You Pay This Amount on the Base of the Bracket e. 22.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0
Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate temized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable: Married Couples Filing Joint Returns If Your Taxable Income Is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 What is their marginal tax rate? O a. 12.0% O b. 35.0% O c. 24.0% O d. 32.0% You Pay This Amount on the Base of the Bracket e. 22.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 8P: PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where...
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![Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate
itemized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable:
Married Couples Filing Joint Returns
If Your Taxable
Income Is
Up to $19,750
$19,750-$80,250
$80,250-$171,050
O a. 12.0%
O
b. 35.0%
$171,050-$326,600
$326,600-$414,700
$414,700-$622,050
Over $622,050
What is their marginal tax rate?
O
O
c. 24.0%
You Pay This Amount
on the Base of the
Bracket
d. 32.0%
e. 22.0%
$0.00
1,975.00
9,235.00
29,211.00
66,543.00
94,735.00
167,307.50
Plus This Percentage on
the Excess over the Base
10.0%
12.0
22.0
24.0
32.0
35.0
37.0
Average Tax Rate at Top
of Bracket
10.0%
11.5
17.1
20.4
22.8
26.9
37.0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb502ef85-41e9-403a-865d-ccc6eb209782%2F0dc55b30-a4d3-4f81-93bf-3217f5272adf%2F3pp8lh_processed.png&w=3840&q=75)
Transcribed Image Text:Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate
itemized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable:
Married Couples Filing Joint Returns
If Your Taxable
Income Is
Up to $19,750
$19,750-$80,250
$80,250-$171,050
O a. 12.0%
O
b. 35.0%
$171,050-$326,600
$326,600-$414,700
$414,700-$622,050
Over $622,050
What is their marginal tax rate?
O
O
c. 24.0%
You Pay This Amount
on the Base of the
Bracket
d. 32.0%
e. 22.0%
$0.00
1,975.00
9,235.00
29,211.00
66,543.00
94,735.00
167,307.50
Plus This Percentage on
the Excess over the Base
10.0%
12.0
22.0
24.0
32.0
35.0
37.0
Average Tax Rate at Top
of Bracket
10.0%
11.5
17.1
20.4
22.8
26.9
37.0
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