Assume a country has the following income tax rates for a single taxpayer in 2018.Maria is single and earned €50,000 in 2018. On Taxable Income...The Tax Rate Is...Up to €7,15010%From €7,150 to €29,05015%From €29,050 to €70,35025%From €70,350 to €146,75028%From €146,750 to €319,10033%Over €319,10035%Fill in the following table with Maria's marginal tax rate, total amount of taxes owed, and average tax rate for 2018.Earnings (C) Marginal Tax Rate (%)Taxes Owed (C)Average Tax Rate (%)50,000An accountant claims that she has found a legal way for Maria to shelter €4,000 of taxable income from the government. (Sheltering some incomemeans avoiding income tax on that income. For example, someone who has €50,000 in income and shelters €10,000 pays income tax on only€40,000.) The maximum amount that Maria is willing to pay to learn this strategy and reduce her taxable income by €4,000 isAssume Maria and Stuart both live in the UK and both earned €50,000 in 2018. However, Stuart paid a lower income tax amount than Maria did.Which of the following may account for the difference? Check all that apply.O Stuart has a 12-year-old child who lives with Stuart and is in full-time education.O Stuart receives industrial injuries benefit.O Stuart lives with a dependent who is permanently and totally disabled.

Income Tax - It is an amount imposed by the government on individual or non individual in respect of…

On Taxable Income... The Tax Rate Is... Up to €7,150 10% From €7,150 to €29,050 15% From €29,050 to €70,350 25% From €70,350 to €146,750 28% From €146,750 to €319,100 33% Over €319,100 35% Fill in the following table with Maria's marginal tax rate, total amount of taxes owed, and average tax rate for 2018. Earnings (C) Marginal Tax Rate (%) Taxes Owed (C) Average Tax Rate (%) 50,000

On Taxable Income... The Tax Rate Is... Up to €7,150 10% From €7,150 to €29,050 15% From €29,050 to €70,350 25% From €70,350 to €146,750 28% From €146,750 to €319,100 33% Over €319,100 35% Fill in the following table with Maria's marginal tax rate, total amount of taxes owed, and average tax rate for 2018. Earnings (C) Marginal Tax Rate (%) Taxes Owed (C) Average Tax Rate (%) 50,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 31P

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