Jorge and Anita, married taxpayers, earn $157,000 in taxable income and $47,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: If Jorge and Anita earn an additional $107,000 of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they report an additional $107,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
Jorge and Anita, married taxpayers, earn $157,000 in taxable income and $47,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: If Jorge and Anita earn an additional $107,000 of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they report an additional $107,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 29P: Arthur and Cora are married and have 2 dependent children. They have a gross income of 95,000. Their...
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Question
Jorge and Anita, married taxpayers, earn $157,000 in taxable income and $47,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly).
Required:
- If Jorge and Anita earn an additional $107,000 of taxable income, what is their marginal tax rate on this income?
- What is their marginal rate if, instead, they report an additional $107,000 in deductions?
Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
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