Table 7.13. 2014 single taxpayer tax calculation [R180] Taxable income more than less than Тах $0 $9,075 $36,900 $89,350 $186,350 $405,100 $406,750 10% of taxable income $9,075 $908 + 15% of the excess over $9,075 $36,900 $89,350 $186,350 $5,081 + 25% of the excess over $39,600 $18,194 + 28% of the excess over $89,350 $45,354 + 33% of the excess over $186,350 $117,541 + 35% of the excess over $405,100 $118,189 + 39.6% of the excess over $406,750 $405,100 $406,750

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
icon
Related questions
Question

7.8.25 d)

use table 7.13 

the effective tax rate for an income was calculated by doing 15856/80000 which equaled 19.82%.

compute the effective tax rate a second time, as a weighted average of the rates in the various brackets, using as weights the amount of income subject to tax at each rate. you should get the same answer.

 

165
Table 7.13. 2014 single taxpayer tax calculation [R180]
Taxable income
more than
less than
Таx
$0
$9,075
$36,900
$89,350
$186,350
$405,100
10% of taxable income
$9,075
$36,900
$89,350
$186,350
$405,100
$406,750
$908 + 15% of the excess over $9,075
$5,081 + 25% of the excess over $39,600
$18,194 + 28% of the excess over $89,350
$45,354 + 33% of the excess over $186,350
$117,541 + 35% of the excess over $405,100
$118,189 + 39.6% of the excess over $406,750
$406,750
Transcribed Image Text:165 Table 7.13. 2014 single taxpayer tax calculation [R180] Taxable income more than less than Таx $0 $9,075 $36,900 $89,350 $186,350 $405,100 10% of taxable income $9,075 $36,900 $89,350 $186,350 $405,100 $406,750 $908 + 15% of the excess over $9,075 $5,081 + 25% of the excess over $39,600 $18,194 + 28% of the excess over $89,350 $45,354 + 33% of the excess over $186,350 $117,541 + 35% of the excess over $405,100 $118,189 + 39.6% of the excess over $406,750 $406,750
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education