FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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This Worksheet is provided as a courtesy to aid your work. Use it at your own discretion.
Use the worksheets below to 1) calculate the tax that each person pays, and 2) the total tax revenue that will be collected. Use the following formula to calculate each person’s tax liability:
Person X → ($Income in this braquet x 0.15) + ($Income in this braquet x 0.30) = Tax Paid by Person X
Example 1; if person X earns $70,000/year, then → ($50,000 x 0.15) + ($20,000 x 0.30) = $7,500 + $6,000 = $13,500
Example 2; if person X earns $10,000/year, then → ($10,000 x 0.15) + ($0 x 0.30) = $1,500 + $0 = $1,500
3. What percent of the
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