Campbell, a single taxpayer, earns $295,000 in taxable income and $6,400 in interest from an investment...

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Campbell, a single taxpayer, earns $295,000 in taxable incomeand $6,400 in interest from an investment in State of New Yorkbonds. (Use the U.S. tax rate schedule). Required: If Campbellearns an additional $20,500 of taxable income, what is her marginaltax rate on this income? What is her marginal rate if, instead, shehad $20,500 of additional deductions? (For all requirements, do notround intermediate calculations.)
a. Marginal tax rate    %
b. Marginal tax rate %
2018 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income isover: But not over: The tax is:
$           0 $    9,525 10% of taxable income
$    9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525
$ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700
$ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500
$157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500
$200,000 $500,000 $45,689.50 plus 35% of the excess over $200,000
$500,000 — $150,689.50 plus 37% of the excess over $500,000

If taxable income isover:	But not over:	The tax is:
$ 0	$ 9,525	10% of taxable income
$ 9,525	$ 38,700	$952.50 plus 12% of the excess over $9,525
$ 38,700	$ 82,500	$4,453.50 plus 22% of the excess over $38,700
$ 82,500	$157,500	$14,089.50 plus 24% of the excess over $82,500
$157,500	$200,000	$32,089.50 plus 32% of the excess over $157,500
$200,000	$500,000	$45,689.50 plus 35% of the excess over $200,000
$500,000	—	$150,689.50 plus 37% of the excess over $500,000

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Question a Taxable income 295000 Interest income 6400 Additional taxable income 20500 Interest income from state of New York bonds is not taxable Total See Answer

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