Income: 120,000 Federal Payroll Tax Rate: 15.3% State Tax Rate: 4 % * Round all answers to 2 decimal places* a) Compute the total tax paid b) What is the marginal tax rate? c) What is the average tax rate? Federal Income Tax: $0 to $15,000 $15,001 to $50,500 $50,501 to $165,000 8% 14% 23%

Income: 120,000 Federal Payroll Tax Rate: 15.3% State Tax Rate: 4 % * Round all answers to 2 decimal places* a) Compute the total tax paid b) What is the marginal tax rate? c) What is the average tax rate? Federal Income Tax: $0 to $15,000 $15,001 to $50,500 $50,501 to $165,000 8% 14% 23%

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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Question

Income: 120,000
Federal Payroll Tax Rate: 15.3%
State Tax Rate: 4 %
*Round all answers to 2 decimal places*
a) Compute the total tax paid
b) What is the marginal tax rate?
c) What is the average tax rate?
Federal Income Tax:
$0 to $15,000
$15,001 to $50,500
$50,501 to $165,000
8%
14%
23%

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