Jorge and Anita, married taxpayers, earn $158,500 in taxable income and $48,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $108,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $108,500 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) a. Marginal tax rate b. Marginal tax rate % %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Jorge and Anita, married taxpayers, earn $158,500 in taxable income and $48,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly).

**Required:**

**a.** If Jorge and Anita earn an additional $108,500 of taxable income, what is their marginal tax rate on this income?

**b.** What is their marginal rate if, instead, they report an additional $108,500 in deductions?

*(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)*

|                   |      |
|-------------------|------|
| a. Marginal tax rate | %    |
| b. Marginal tax rate | %    |

There is no graphical or diagrammatic element present in the text provided. The task primarily involves calculating and identifying marginal tax rates based on additional taxable income and deductions for a married couple filing jointly under the U.S. tax code.
Transcribed Image Text:Jorge and Anita, married taxpayers, earn $158,500 in taxable income and $48,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). **Required:** **a.** If Jorge and Anita earn an additional $108,500 of taxable income, what is their marginal tax rate on this income? **b.** What is their marginal rate if, instead, they report an additional $108,500 in deductions? *(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)* | | | |-------------------|------| | a. Marginal tax rate | % | | b. Marginal tax rate | % | There is no graphical or diagrammatic element present in the text provided. The task primarily involves calculating and identifying marginal tax rates based on additional taxable income and deductions for a married couple filing jointly under the U.S. tax code.
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