Using the individual tax rate schedule, perform the following:a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $14,900; $75,700; $304,000; $492,000;$1.1 million; $1.5 million; and $2.3 million.b. Plot the average tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). What generalization can be made concerning therelationship between these variables?a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $14,900; $75,700; $304,000; $492,000;$1.1 million; $1.5 million; and $2.3 million.(Round dollars to the nearest cent and round percentages to one decimal place.)Before-Tax Earnings$14,900Tax Liability$Data table----Tax Rates10.0%12.0%22.0%24.0%32.0%35.0%37.0%C(...)Taxable Income$0 to $9,875$9,876 to $40,125$40,126 to $85,525$85,526 to $163,300$163,301 to $207,350$207,351 to $518,400Over $518,401(Click the icon here in order to copy the contents of the data table below into a spreadsheet.)TABLE 1.2: Federal Income Tax Rates and Brackets for Individual Returns (2018)PrintAfter-Tax Earnings$Average Tax Rate%TaxesDone10% of taxable income$987.50, plus 12% of the amount over $9,875$4,617.50, plus 22% of the amount over $40,125$14,605.50, plus 24% of the amount over $85,525$33,271.50, plus 32% of the amount over $163,300$47,367.50, plus 35% of the amount over $207,350$156,235.50, plus 37% of the amount over $518,400-X

Income tax liability is the amount of tax that an individual or entity owes to the government based…

Using the individual tax rate schedule, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $14,900; $75,700; $304,000; $492,000; $1.1 million; $1.5 million; and $2.3 million. b. Plot the average tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). What generalization can be made concerning the relationship between these variables?

Using the individual tax rate schedule, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $14,900; $75,700; $304,000; $492,000; $1.1 million; $1.5 million; and $2.3 million. b. Plot the average tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). What generalization can be made concerning the relationship between these variables?

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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