Problem 1-34 (LO 1-3) (Algo) 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. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in the tabs below. Req A Req B Req C Req D What is his current marginal tax rate? Marginal tax rate % < Req C Reg D D $ 40,525 $ 86,375 $ 164,925 $ 0 $ 9,950 $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 523,600 $ 209,425 $ 523,600 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 0 $ 19,900 $ 19,900 $ 81,050 $ 81,050 $ 172,750 $ 172,750 $ 329,850 $ 418,850 $ 329,850 $418,850 $ 628,300 $ 628,300 The tax is: 10% of taxable income $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,200 $ 14,200 $ 54,200 $ 86,350 $ 54,200 $ 86,350 $164,900 $ 164,900 $ 209,400 $ 209,400 $ 523,600 $ 523,600 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 9,950 $ 9,950 $ 40,525 $ 40,525 $ 86,375 $ 86,375 $ 164,925 $ 164,925 $ 209,425 $ 314,150 $ 209,425 $ 314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $ 9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 26P
Question
Problem 1-34 (LO 1-3) (Algo)
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. How much federal tax will he owe?
b. What is his average tax rate?
c. What is his effective tax rate?
d. What is his current marginal tax rate?
Complete this question by entering your answers in the tabs below.
Req A
Req B
Req C
Req D
What is his current marginal tax rate?
Marginal tax rate
%
< Req C
Reg D D
Transcribed Image Text:Problem 1-34 (LO 1-3) (Algo) 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. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in the tabs below. Req A Req B Req C Req D What is his current marginal tax rate? Marginal tax rate % < Req C Reg D D
$ 40,525
$ 86,375
$ 164,925
$
0
$ 9,950
$ 9,950
$ 40,525
$ 86,375
$ 164,925
$ 209,425
$ 523,600
$ 209,425
$ 523,600
10% of taxable income
$995 plus 12% of the excess over $9,950
$4,664 plus 22% of the excess over $40,525
$14,751 plus 24% of the excess over $86,375
$33,603 plus 32% of the excess over $164,925
$47,843 plus 35% of the excess over $209,425
$157,804.25 plus 37% of the excess over $523,600
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
$
0
$ 19,900
$ 19,900
$ 81,050
$ 81,050
$ 172,750
$ 172,750
$ 329,850
$ 418,850
$ 329,850
$418,850
$ 628,300
$ 628,300
The tax is:
10% of taxable income
$1,990 plus 12% of the excess over $19,900
$9,328 plus 22% of the excess over $81,050
$29,502 plus 24% of the excess over $172,750
$67,206 plus 32% of the excess over $329,850
$95,686 plus 35% of the excess over $418,850
$168,993.50 plus 37% of the excess over $628,300
Schedule Z-Head of Household
If taxable income is over: But not over:
$
0
$ 14,200
$ 14,200
$ 54,200
$ 86,350
$ 54,200
$ 86,350
$164,900
$ 164,900
$ 209,400
$ 209,400
$ 523,600
$ 523,600
The tax is:
10% of taxable income
$1,420 plus 12% of the excess over $14,200
$6,220 plus 22% of the excess over $54,200
$13,293 plus 24% of the excess over $86,350
$32,145 plus 32% of the excess over $164,900
$46,385 plus 35% of the excess over $209,400
$156,355 plus 37% of the excess over $523,600
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
$
0
$ 9,950
$ 9,950
$ 40,525
$ 40,525
$ 86,375
$ 86,375
$ 164,925
$ 164,925
$ 209,425
$ 314,150
$ 209,425
$ 314,150
The tax is:
10% of taxable income
$995 plus 12% of the excess over $ 9,950
$4,664 plus 22% of the excess over $40,525
$14,751 plus 24% of the excess over $86,375
$33,603 plus 32% of the excess over $164,925
$47,843 plus 35% of the excess over $209,425
$84,496.75 plus 37% of the excess over $314,150
Transcribed Image Text:$ 40,525 $ 86,375 $ 164,925 $ 0 $ 9,950 $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 523,600 $ 209,425 $ 523,600 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 0 $ 19,900 $ 19,900 $ 81,050 $ 81,050 $ 172,750 $ 172,750 $ 329,850 $ 418,850 $ 329,850 $418,850 $ 628,300 $ 628,300 The tax is: 10% of taxable income $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,200 $ 14,200 $ 54,200 $ 86,350 $ 54,200 $ 86,350 $164,900 $ 164,900 $ 209,400 $ 209,400 $ 523,600 $ 523,600 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 9,950 $ 9,950 $ 40,525 $ 40,525 $ 86,375 $ 86,375 $ 164,925 $ 164,925 $ 209,425 $ 314,150 $ 209,425 $ 314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $ 9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150
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