FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 3, Problem 13P
Summary Introduction
To determine: The best investment option among the two options.
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Students have asked these similar questions
If the tax rates are 15% on the first $50,000 of taxable income, and 20% on the next $25,000, and 25% on the next $25,000, what is the tax liability for an individual with $80,000 of taxable income, what is the marginal tax rate, and what is the average tax rate ?
a. $10,250, 15%, and 20%
b. $25,122, 22%, and 16%
c. $11,345, 15%, and 34%
d. $13,750, 25%, and 17.19%
I had a 50/50 chance of getting this question right and the answer is 12.2%, but I don't know how to draw that conclusion. The problem is:
Would you prefer a fully taxable investment earning 12.2% or a tax exempt investment of 9.2%. Assuming a 24% tax rate.
Please help me understand.
If Hulk has taxable income = $94,000, how much will it pay in taxes?
Select one:
a. $16,750
b. $13,500
c. $20,210
d. $11,750
e. $10,050
???
Chapter 3 Solutions
FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
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