Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chuck, a single taxpayer, earns $80,750 in taxable

Chuck, a single taxpayer, earns $80,750 in taxable income and $30,750 in interest from an investment...

70.2K

Verified Solution

Question

Accounting

Chuck, a single taxpayer, earns $80,750 in taxable income and$30,750 in interest from an investment in City of Heflin bonds.(Use the U.S. tax rate schedule.)

Required: If Chuck earns an additional $64,500 of taxableincome, what is his marginal tax rate on this income? What is hismarginal rate if, instead, he had $64,500 of additionaldeductions?

Answer & Explanation Solved by verified expert
3.8 Ratings (650 Votes)
US tax rate schedule for Individuals For the Year 2018 Taxable Income Tax Rate 0 to 9525 10 9526 to 38700 12 38701 to 82500 22 82501 to 157500 24 157501 to 200000 32 200000 to 500000 35 Over 500000 37 Tax brackets apply only to your taxable incomethat is your total income minus all your adjustments exemptions and deductions Interest from the Investment in the state bonds is exempted and therefore will not be included in calculation of taxpayers taxable income Therefore Taxable income 80750 Current Marginal income tax rate applicable to Chuck 22 Federal Income tax Liability on taxable income of 80750 Tax rate Tax Amount 0 to 9525 10 9525 x 10 95250 9526 to 38700 12 29175 x 12 3501 38701 to    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Discuss structure and function: why do the Kidney tubules contain cuboidal epithelial tissue? 2. Discuss structure...

Medical Sciences
Q

Please describe the value associated with momentum and heat transfer analogies and the role of the...

Mechanical Engineering
Q

Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of...

Accounting
Q

ed and mass e viruses However is viruses and then O 8 Compare and contrast...

Biology
Q

For which of the following scatterplots is the correlation coefficient an appropriate summary a b...

Statistics
Q

In the exercise X is a binomial variable with n 6 and p 0 3...

Algebra
Q

Identify the factors that are relevant in determining the annual depreciation charge, and explain whether...

Accounting
Q

ions 1. 2. 3. 4. t of the balance sheet and the income statement S,...

Accounting
Q

110 Ps-1. The adjusted tetal Balance Age 30, 2023. Selections. Prepare the four doing and...

Accounting
Q

Break-Even Sales BeerBev, Inc., reported the following operating information for a recent...

Accounting
Q

If a couple has an annual income of $200,000, what is the maximum monthly payment...

Finance
Q

COOKIE & COFFEE CREATIONS INC. EXAMPLE: ...

Accounting