Required:Determine the average amount of taxable income per tax return, for each of the ranges of taxable income provided, using theinformation in the below table. Taxable Income and Total Tax Liability are in thousands.Note: Enter your answers in whole dollars and not in thousands. Round the final answers to the nearest dollar value.ItemNumber of returnsTaxable incomeTotal tax liabilityAverage tax rate*$50,00028,925,996$50,000 to under$100,00037,547,154$15,000 to underRanges of Adjusted Gross Income$30,000 to underUnder $15,000$30,00030,714,303$5,382,12527,410,121$189,339,926$533,6179.91%$15,620,2448.25%$ 56,377,9858.82%$ 639,283,718$ 1,912,919,663$ 215,889,66711.29%$100,000 to under$200,00024,179,926$ 2,687,812,279$ 385,958,66214.36%$200,000 or more11,615,832$ 6,249,259,422$ 1,591,915,17925.47%*The average tax rate is total tax liability divided by taxable income.Under $15,000$15,000 to under $30,000$30,000 to under $50,000$50,000 to under $100,000$100,000 to under $200,000$200,000 or more

The objective of the question is to calculate the average amount of taxable income per tax return…

Answered: Required: Determine the average amount…

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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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).
The following table shows tax due for the given taxable income level for a single taxpayer. Taxable income Tax due $97,000 $97,050 $97,100 $97,150 $97,200 $21,913 $21,927 $21,941 $21,955 $21,969 (a) Show that the data in the table are linear. For every change of $50 in the taxable income there is constant change of $ 1.00 in the tax due. These data exhibit a constant rate of change and are linear. (b) How much additional tax is due on each dollar over $97,000? (Round your answer to the nearest cent.) per dollar (c) What would you expect for your tax due if you had a taxable income of $97,000? 24 What would you expect for your tax due if you had a taxable income of $98,000? $ (d) Find a linear formula that gives tax due T if your income is A dollars over $97,000. (Round equation parameters to two decimal places.) T =
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