TAXABLE INCOME TAX RATE $0------ $8,700 10% $8,700---- 15%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6
Transcribed Image Text:TAXABLE INCOME
TAX RATE
$0------
$8,700
10%
$8,700----
$35,350
15%
$35,350----
$85,650
25%
$85,650----
$178,650
28%
$178,650-----
$388,350
33%
OVER----
35%
$388,350
Use the marginal income tax
rate above to compute the following:
a. Tax due on taxable income of $50,000;
$100,000; $200,000; and $500,000.
b. Average Tax Rate (ATR) on taxable income of
$50,00; $100,000; $200,000; and
$500,000.
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