7.8.25Use table 7.13 to answer the following questions.a) compute the tax due in 2014 on a net taxable income of $80k. show your work.b) compute the effective tax rate for that income. c) check your answers with those in the spreadsheet graduatedtax.xlsxd) 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. **Table 7.13. 2014 Single Taxpayer Tax Calculation [R180]**This table outlines the tax calculation for a single taxpayer in 2014, displaying the brackets for taxable income and corresponding tax rates.| Taxable Income | Tax ||----------------|-----|| More than $0, less than $9,075 | 10% of taxable income || More than $9,075, less than $36,900 | $908 + 15% of the excess over $9,075 || More than $36,900, less than $89,350 | $5,081 + 25% of the excess over $36,900 || More than $89,350, less than $186,350 | $18,194 + 28% of the excess over $89,350 || More than $186,350, less than $405,100 | $45,354 + 33% of the excess over $186,350 || More than $405,100, less than $406,750 | $117,541 + 35% of the excess over $405,100 || More than $406,750 | $118,189 + 39.6% of the excess over $406,750 |This table serves as a guide to understanding how federal taxes were calculated for single taxpayers in the United States for the year 2014, divided into various income brackets each with its own specific rate.

Effective tax rate=Tax due/Net taxable income

Answered: Use table 7.13 to answer the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

7.8.25

Use table 7.13 to answer the following questions.

a) compute the tax due in 2014 on a net taxable income of $80k. show your work.

b) compute the effective tax rate for that income.

c) check your answers with those in the spreadsheet graduatedtax.xlsx

d) 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.

**Table 7.13. 2014 Single Taxpayer Tax Calculation [R180]**

This table outlines the tax calculation for a single taxpayer in 2014, displaying the brackets for taxable income and corresponding tax rates.

| Taxable Income | Tax |
|----------------|-----|
| More than $0, less than $9,075 | 10% of taxable income |
| More than $9,075, less than $36,900 | $908 + 15% of the excess over $9,075 |
| More than $36,900, less than $89,350 | $5,081 + 25% of the excess over $36,900 |
| More than $89,350, less than $186,350 | $18,194 + 28% of the excess over $89,350 |
| More than $186,350, less than $405,100 | $45,354 + 33% of the excess over $186,350 |
| More than $405,100, less than $406,750 | $117,541 + 35% of the excess over $405,100 |
| More than $406,750 | $118,189 + 39.6% of the excess over $406,750 |

This table serves as a guide to understanding how federal taxes were calculated for single taxpayers in the United States for the year 2014, divided into various income brackets each with its own specific rate.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions