Income Bracket $0-$6,000 $6,000 $40,000 > $40,000 Marginal Tax Rate 0% 30% 40% a. Mr. Smith has an income of $50,000 per annum. Calculate his tax bill for the year: $ 14200 b. What is his average tax rate? 28.40°% (Round to two decimal places.) c. What is his highest marginal tax rate? 40 %

Income Bracket $0-$6,000 $6,000 $40,000 > $40,000 Marginal Tax Rate 0% 30% 40% a. Mr. Smith has an income of $50,000 per annum. Calculate his tax bill for the year: $ 14200 b. What is his average tax rate? 28.40°% (Round to two decimal places.) c. What is his highest marginal tax rate? 40 %

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 Bracket
Marginal Tax Rate
$0-$6,000
$6,000 $40,000
> $40,000
0%
30%
40%
a. Mr. Smith has an income of $50,000 per annum. Calculate his tax bill for the year: $ 14200
b. What is his average tax rate? 28.40°% (Round to two decimal places.)
c. What is his highest marginal tax rate? 40°%

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