Jorge and Anita, married taxpayers, earn $159,000 in taxable income and $49,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly.) Required: a. If Jorge and Anita earn an additional $109,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $109,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
Problem 22MCQ: Melodie's taxable income is $39,000 and she pays income tax of $4,489. If Melodie's taxable income...
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Problem 1-39 (LO 1-3) (Algo)
Jorge and Anita, married taxpayers, earn $159,000 in taxable income and $49,000 in interest from an investment in City of Heflin
bonds. (Use the U.S. tax rate schedule for married filing jointly.)
Required:
a. If Jorge and Anita earn an additional $109,000 of taxable income, what is their marginal tax rate on this income?
b. What is their marginal rate if, instead, they report an additional $109,000 in deductions?
Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
a. Marginal tax rate
b. Marginal tax rate
%
%
Transcribed Image Text:Problem 1-39 (LO 1-3) (Algo) Jorge and Anita, married taxpayers, earn $159,000 in taxable income and $49,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly.) Required: a. If Jorge and Anita earn an additional $109,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $109,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %
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