FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Chuck, a single taxpayer, earns $76,600 in taxable income and $11,700 in interest
from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)
Required:
a. If Chuck earns an additional $40,000 of taxable income, what is his marginal
tax rate on this income?
b. What is his marginal rate if, instead, he had $40,000 of additional deductions?
(For all requirements, do not round intermediate calculations. Round
percentage answers to 2 decimal places.)
a. Marginal tax rate
23.55 %
b. Marginal tax rate
21.12 %
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Transcribed Image Text:Chuck, a single taxpayer, earns $76,600 in taxable income and $11,700 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.) a. Marginal tax rate 23.55 % b. Marginal tax rate 21.12 %
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