Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)Required:If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?What is his marginal rate if, instead, he had $40,000 of additional deductions?Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. 2022 Tax Rate SchedulesIndividualsSchedule X-SingleIf taxable income is over: But not over:$ 0$ 10,275$ 41,775$ 89,075$ 170,050$ 215,950$539,900$ 0$ 20,550$ 83,550$ 178,150$ 340,100$ 431,900$ 647,850$ 10,275$ 41,775$ 89,075$ 170,050$215,950$539,900Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)If taxable income is over: But not over:$ 0$ 14,650$ 55,900$ 89,050$ 170,050$ 215,950$539,900$ 20,550$ 83,550$ 178,150$340,100$431,900$ 647,850Schedule Z-Head of HouseholdIf taxable income is over: But not over:$ 14,650$ 55,900$ 89,050$ 170,050$215,950$539,900The tax is:$ 41,775$ 89,075$ 170,050$215,950$323,92510% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$162,718 plus 37% of the excess over $539,900Schedule Y-2-Married Filing SeparatelyIf taxable income is over: But not over:$ 10,275$ 0$10,275$ 41,775$ 89,075$ 170,050$215,950$ 323,92510% of taxable income$2,055 plus 12% of the excess over $20,550$9,615 plus 22% of the excess over $83,550$30,427 plus 24% of the excess over $178,150$69.295 plus 32% of the excess over $340,100$98,671 plus 35% of the excess over $431,900| $174,253.50 plus 37% of the excess over $647,850The tax is:The tax is:10% of taxable income$1,465 plus 12% of the excess over $14,650$6,415 plus 22% of the excess over $55,900$13,708 plus 24% of the excess over $89,050$33,148 plus 32% of the excess over $170,050$47,836 plus 35% of the excess over $215,950| $161.218.50 plus 37% of the excess over $539,900The tax is:10% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$87,126.75 plus 37% of the excess over $323,925 Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use theU.S. tax rate schedule.)Required:a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?b. What is his marginal rate if, instead, he had $40,000 of additional deductions?Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.Answer is complete but not entirely correct.a. Marginal tax rateb. Marginal tax rate23.02%19.77 %

Income tax refers to the charge that an individual and a corporation is obliged to pay on their…

Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. Answer is complete but not entirely correct. a. Marginal tax rate b. Marginal tax rate 23.02% 19.77 %

Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. Answer is complete but not entirely correct. a. Marginal tax rate b. Marginal tax rate 23.02% 19.77 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Required:

If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
What is his marginal rate if, instead, he had $40,000 of additional deductions?
Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.

2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
$ 0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$ 215,950
$539,900
$ 0
$ 20,550
$ 83,550
$ 178,150
$ 340,100
$ 431,900
$ 647,850
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$539,900
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
$ 0
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$ 215,950
$539,900
$ 20,550
$ 83,550
$ 178,150
$340,100
$431,900
$ 647,850
Schedule Z-Head of Household
If taxable income is over: But not over:
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$215,950
$539,900
The tax is:
$ 41,775
$ 89,075
$ 170,050
$215,950
$323,925
10% of taxable income
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
$162,718 plus 37% of the excess over $539,900
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
$ 10,275
$ 0
$10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$ 323,925
10% of taxable income
$2,055 plus 12% of the excess over $20,550
$9,615 plus 22% of the excess over $83,550
$30,427 plus 24% of the excess over $178,150
$69.295 plus 32% of the excess over $340,100
$98,671 plus 35% of the excess over $431,900
| $174,253.50 plus 37% of the excess over $647,850
The tax is:
The tax is:
10% of taxable income
$1,465 plus 12% of the excess over $14,650
$6,415 plus 22% of the excess over $55,900
$13,708 plus 24% of the excess over $89,050
$33,148 plus 32% of the excess over $170,050
$47,836 plus 35% of the excess over $215,950
| $161.218.50 plus 37% of the excess over $539,900
The tax is:
10% of taxable income
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
$87,126.75 plus 37% of the excess over $323,925

Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the
U.S. tax rate schedule.)
Required:
a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
b. What is his marginal rate if, instead, he had $40,000 of additional deductions?
Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.
Answer is complete but not entirely correct.
a. Marginal tax rate
b. Marginal tax rate
23.02%
19.77 %

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