FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Calculating Taxable Income
Taxable income
|
Rate
|
---|---|
$0 — $9,525 | 10.0% |
$9,526 — $38,700 | 12.0% |
$38,701 — $82,500 | 22.0% |
$82,501 — $157,500 | 24.0% |
$157,501 — $200,000 | 32.0% |
$200,001 — $500,000 | 35.0% |
$500,001 or more | 37% |
Using the previous tax table, compute the tax liability for the individual in the scenario presented, rounding the liability to the nearest dollar. In addition, use the dropdown lists to identify the marginal tax rate and average tax rate for the individual in the scenario.
Shen’s Tax Scenario
Shen is a young professional with taxable income of $116,500 as an advertising account executive.
What is Shen’s total tax liability?
(Note: Round your answer to the nearest cent, if necessary.)
What is Shen’s top marginal tax rate?
What is Shen's average tax rate?
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