Suppose that Carson earns $80,000 per year. Now suppose that he must pay income taxes according to the tax schedule shown below. Income Таx Rate (%) $0 to $7,000 10 $7,001 to $33,000 15 $33,001 to $75,000 25 $75,001 to $142,000 30 Over $142,000 40 Instructions: Enter your answers rounded to the nearest whole number. a. According to the table, what type of income tax does Carson face? Progressive b. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay? $ What is Carson's marginal tax rate? percent
Suppose that Carson earns $80,000 per year. Now suppose that he must pay income taxes according to the tax schedule shown below. Income Таx Rate (%) $0 to $7,000 10 $7,001 to $33,000 15 $33,001 to $75,000 25 $75,001 to $142,000 30 Over $142,000 40 Instructions: Enter your answers rounded to the nearest whole number. a. According to the table, what type of income tax does Carson face? Progressive b. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay? $ What is Carson's marginal tax rate? percent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Suppose that Carson earns $80,000 per year. Now suppose that he must pay income taxes according to the tax schedule shown
below.
Income
Tax Rate (%)
$0 to $7,000
10
$7,001 to $33,000
15
$33,001 to $75,000
25
$75,001 to $142,000
Over $142,000
30
40
Instructions: Enter your answers rounded to the nearest whole number.
a. According to the table, what type of income tax does Carson face?
Progressive
b. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay?
What is Carson's marginal tax rate?
percent
What is his average tax rate?
percent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c33e07c-8694-4e34-ac4f-8e0baded1561%2F6c1d40a5-f5af-4370-81c7-c4217b90f9fa%2Fwaazzh_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that Carson earns $80,000 per year. Now suppose that he must pay income taxes according to the tax schedule shown
below.
Income
Tax Rate (%)
$0 to $7,000
10
$7,001 to $33,000
15
$33,001 to $75,000
25
$75,001 to $142,000
Over $142,000
30
40
Instructions: Enter your answers rounded to the nearest whole number.
a. According to the table, what type of income tax does Carson face?
Progressive
b. Assume that Carson has no tax exemptions or deductions. How much in income taxes must Carson pay?
What is Carson's marginal tax rate?
percent
What is his average tax rate?
percent
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