Marginal tax rates Using the tax rate schedule given here i, perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $14,700; $59,500; $89,600; $156,000; $247,000; $456,600; and $1 million. b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
Marginal tax rates Using the tax rate schedule given here i, perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $14,700; $59,500; $89,600; $156,000; $247,000; $456,600; and $1 million. b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Marginal tax rates Using the tax rate schedule given here, perform the following:
a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $14,700; $59,500;
$89,600; $156,000; $247,000; $456,600; and $1 million.
b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc89746d9-bb52-42fd-9df9-cc68f0feebb6%2Fc0a4bcff-2b7b-4f9d-9667-4c819279ddaa%2Fjz7025a_processed.png&w=3840&q=75)
Transcribed Image Text:Marginal tax rates Using the tax rate schedule given here, perform the following:
a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $14,700; $59,500;
$89,600; $156,000; $247,000; $456,600; and $1 million.
b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
![(Click the icon here in order to copy the contents of the data table below into a spreadsheet.)
Tax Rates Schedule
Base tax
Range of taxable income
$0 to
9,876 to
40,126 to
85,526 to
163,301 to
207,351 to
518,401 to
$9,875
40,125
85,525
163,300
207,350
518,400
Unlimited
+
$0 + (10%
988 + (12%
+ (22%
(24%
(32%
(35%
(37%
4,618
14,606 +
33,272 +
47,368 +
156,235 +
(Marginal rate x amount over base bracket)
x amount over
x amount over
x amount over
x amount over
x amount over
x amount over
x amount over
$0)
$9,875)
40,125)
85,525)
163,300)
207,350)
518,400)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc89746d9-bb52-42fd-9df9-cc68f0feebb6%2Fc0a4bcff-2b7b-4f9d-9667-4c819279ddaa%2Fn7k6kp_processed.png&w=3840&q=75)
Transcribed Image Text:(Click the icon here in order to copy the contents of the data table below into a spreadsheet.)
Tax Rates Schedule
Base tax
Range of taxable income
$0 to
9,876 to
40,126 to
85,526 to
163,301 to
207,351 to
518,401 to
$9,875
40,125
85,525
163,300
207,350
518,400
Unlimited
+
$0 + (10%
988 + (12%
+ (22%
(24%
(32%
(35%
(37%
4,618
14,606 +
33,272 +
47,368 +
156,235 +
(Marginal rate x amount over base bracket)
x amount over
x amount over
x amount over
x amount over
x amount over
x amount over
x amount over
$0)
$9,875)
40,125)
85,525)
163,300)
207,350)
518,400)
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