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Taxable Income and Total Tax Liability are in thousands Iten Number of returns Taxable income 39,273,482 Ranges of Adjusted Gross $30,000 to under $50,000 Under $15,000 $15,000 to under $30,000 27,479,909 Total tax liability Average tax rate $ 6,942,229 $ 781,332 11.25% $ 192,991,768 $ 14,879,011 7.71% "The average tax rate is total tax liability divided by taxable income. Required: 27,613,637 $ 604,739,808 $ 50,590,871 8.37% Income $50,000 to under $100,000 35,461,449 $ 1,754,582,416) $187,033,777 10.66% $100,000 to under $200.000 21,933,838 $ 2,305,375,171 $318,659,367 a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, calculate the amount of tax liability for 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? 13.82% $200,000 or more 9,584,402 $ 3,866,022,623 $ 907,242,543 23.47% Required A Required B If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required>

Taxable Income and Total Tax Liability are in thousands Iten Number of returns Taxable income 39,273,482 Ranges of Adjusted Gross $30,000 to under $50,000 Under $15,000 $15,000 to under $30,000 27,479,909 Total tax liability Average tax rate $ 6,942,229 $ 781,332 11.25% $ 192,991,768 $ 14,879,011 7.71% "The average tax rate is total tax liability divided by taxable income. Required: 27,613,637 $ 604,739,808 $ 50,590,871 8.37% Income $50,000 to under $100,000 35,461,449 $ 1,754,582,416) $187,033,777 10.66% $100,000 to under $200.000 21,933,838 $ 2,305,375,171 $318,659,367 a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, calculate the amount of tax liability for 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? 13.82% $200,000 or more 9,584,402 $ 3,866,022,623 $ 907,242,543 23.47% Required A Required B If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required>

FINANCIAL ACCOUNTING
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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Taxable Income and Total Tax Liability are in thousands Iten Number of returns Taxable income 39,273,482 Ranges of Adjusted Gross $30,000 to under $50,000 Under $15,000 $15,000 to under $30,000 27,479,909 Total tax liability Average tax rate $ 6,942,229 $ 781,332 11.25% $ 192,991,768 $ 14,879,011 7.71% "The average tax rate is total tax liability divided by taxable income. Required: 27,613,637 $ 604,739,808 $ 50,590,871 8.37% Income $50,000 to under $100,000 35,461,449 $ 1,754,582,416) $187,033,777 10.66% $100,000 to under $200.000 21,933,838 $ 2,305,375,171 $318,659,367 a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, calculate the amount of tax liability for 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? 13.82% $200,000 or more 9,584,402 $ 3,866,022,623 $ 907,242,543 23.47% Required A Required B If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required>
Transcribed Image Text:Taxable Income and Total Tax Liability are in thousands Iten Number of returns Taxable income 39,273,482 Ranges of Adjusted Gross $30,000 to under $50,000 Under $15,000 $15,000 to under $30,000 27,479,909 Total tax liability Average tax rate $ 6,942,229 $ 781,332 11.25% $ 192,991,768 $ 14,879,011 7.71% "The average tax rate is total tax liability divided by taxable income. Required: 27,613,637 $ 604,739,808 $ 50,590,871 8.37% Income $50,000 to under $100,000 35,461,449 $ 1,754,582,416) $187,033,777 10.66% $100,000 to under $200.000 21,933,838 $ 2,305,375,171 $318,659,367 a. If the federal tax system was changed to a proportional tax rate structure with a tax rate of 1710%, calculate the amount of tax liability for 2021 for all taxpayers. b. What is the amount and nature of difference from actual tax liability specified in the above table? 13.82% $200,000 or more 9,584,402 $ 3,866,022,623 $ 907,242,543 23.47% Required A Required B If the federal tax system was changed to a proportional tax rate structure with a tax rate of 17.10%, calculate the amount of tax liability for 2021 for all taxpayers. Note: Consider intermediate computations and final answer in thousands of dollars, rounded to the nearest whole number. Amount of tax liability Required>
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