Use table 7.13 to answer the following questions. a) compute the tax due in 2014 on a net taxable income of $80k. show your work. b) compute the effective tax rate for that income. c) check your answers with those in the spreadsheet graduatedtax.xlsx d) compute the effective tax rate a second time, as a weighted average of the rates in the various brackets, using as weights the amount of income subject to tax at each rate. you should get the same answer.
Use table 7.13 to answer the following questions. a) compute the tax due in 2014 on a net taxable income of $80k. show your work. b) compute the effective tax rate for that income. c) check your answers with those in the spreadsheet graduatedtax.xlsx d) compute the effective tax rate a second time, as a weighted average of the rates in the various brackets, using as weights the amount of income subject to tax at each rate. you should get the same answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7.8.25
Use table 7.13 to answer the following questions.
a) compute the tax due in 2014 on a net taxable income of $80k. show your work.
b) compute the effective tax rate for that income.
c) check your answers with those in the spreadsheet graduatedtax.xlsx
d) compute the effective tax rate a second time, as a weighted average of the rates in the various brackets, using as weights the amount of income subject to tax at each rate. you should get the same answer.
![165
Table 7.13. 2014 single taxpayer tax calculation [R180]
Taxable income
more than
less than
Таx
$0
$9,075
$36,900
$89,350
$186,350
$405,100
10% of taxable income
$9,075
$36,900
$89,350
$186,350
$405,100
$406,750
$908 + 15% of the excess over $9,075
$5,081 + 25% of the excess over $39,600
$18,194 + 28% of the excess over $89,350
$45,354 + 33% of the excess over $186,350
$117,541 + 35% of the excess over $405,100
$118,189 + 39.6% of the excess over $406,750
$406,750](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a1b2b9d-136a-4887-96f9-8b3f93dfa3b9%2F5df1c234-f704-4691-92ea-76a0f8c1ab6e%2Fu6dtxz2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:165
Table 7.13. 2014 single taxpayer tax calculation [R180]
Taxable income
more than
less than
Таx
$0
$9,075
$36,900
$89,350
$186,350
$405,100
10% of taxable income
$9,075
$36,900
$89,350
$186,350
$405,100
$406,750
$908 + 15% of the excess over $9,075
$5,081 + 25% of the excess over $39,600
$18,194 + 28% of the excess over $89,350
$45,354 + 33% of the excess over $186,350
$117,541 + 35% of the excess over $405,100
$118,189 + 39.6% of the excess over $406,750
$406,750
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