Answered: Scot and Vidia, married taxpayers, earn…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 2RE: Refer to RE18-1. Assume that Parkers taxable income for Year 1 is 150,000. Prepare the journal entry...

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Scot and Vidia, married taxpayers, earn $242,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly).

Required: Having trouble with #2!!!

If Scot and Vidia earn an additional $82,000 of taxable income, what is their marginal tax rate on this income? 24%
What is their marginal tax rate if, instead, they report an additional $82,000 in deductions?

(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over:But not over:
The tax is:
$ 19,900
$ 81,050
$ 172,750 |$9,328 plus 22% of the excess over $81,050
$ 329,850 $29,502 plus 24% of the excess over $172,750
$ 418,850 $67,206 plus 32% of the excess over $329,850
$ 628,300 |$95,686 plus 35% of the excess over $418,850
$
10% of taxable income
$ 19,900
$ 81,050
$ 172,750
$ 329,850
$ 418,850
$ 628,300
$1,990 plus 12% of the excess over $19,900
$168,993.50 plus 37% of the excess over $628,300

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