1.2.11Use the 2012 marginal tax rates to compute the tax owed by the following person. Round taxable income to the nearest dolar as neededAmanied couple fing jointly with a taxable income of $296.000 and a $7000 tax creditClick the icon to view the 2012 marginal tax ratesThe tax owed is $(Round to the nearest cent as needed.)

Answered: 1.2.11 Use the 2012 marginal tax rates…

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 8P: PERSONAL TAXES Joe and Jane Keller are a married couple who file a joint income tax return, where...

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1.2.11
Use the 2012 marginal tax rates to compute the tax owed by the following person. Round taxable income to the nearest dolar as needed
Amanied couple fing jointly with a taxable income of $296.000 and a $7000 tax credit
Click the icon to view the 2012 marginal tax rates
The tax owed is $
(Round to the nearest cent as needed.)

Expert Solution

Step 1 Introduction:

Marginal tax rate is that rate under which the tax is charged on an additional dollar earned. Under federal system, marginal tax increases with the increase in income.

Step 2 Taxation:

Taxable Income:

Particulars	Amount($)
Taxable income	$296,000
Less: Tax credit	$7,000
Less Standard deduction	$11,900
Net taxable income	$277,100

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