Explain how the given dollar amounts are determined

Assignment Help Financial Management

Reference no: EM131998005

An examination of the tax rate schedules for single taxpayers for 2016 indicates that the tax is a given dollar amount plus a percentage of taxable income exceeding a particular level.

a) Explain how the "given dollar amounts" are determined.

b) Assuming the taxpayer has a taxable income of $50,000 and is single, what is the tax liability for 2016?

c) What is the taxpayers marginal tax rate?

d) What is the taxpayers average rate?

e) Assuming the taxpayer has tax-exempt interest income from multipal bonds of $30,000, what is the taxpayers effective tax rate?

Reference no: EM131998005

Questions Cloud

Compute current yield on both bonds : Compute the current yield on both bonds. Has your answer changed between parts b and c of this question in terms of which bond to select?

What are some forms of off- balanced-sheet financing : What are some forms of off- balanced-sheet financing? Why might a company be interested in using off-balance sheet financing?

Obtains all the proxies for the uncommitted votes : How many directors can Mr. Clark be sure of electing? How many directors could Mr. Clark elect if he obtains all the proxies for the uncommitted votes?

Manage foreign exchange exposure : When should a company use the following to manage foreign exchange exposure:

Explain how the given dollar amounts are determined : Explain how the "given dollar amounts" are determined. What is the taxpayers marginal tax rate?

Compute the earning per share immediately before stock issue : Compute the earnings per share immediately before the stock issue. Compute the net proceeds to the Presley Corporation.

What is the projected total annual return : Automobile Loans $ Furniture Loans $ Other Secured Loans $ Signature Loans $ Risk Free Loans $ What is the projected total annual return?

What is the project net present value : ABC Inc. is considering a project with an initial cost of $1,575. what is the project's net present value?

What required deductions were taken out of sid pay : what required deductions were taken out of Sid's pay and what were their amounts?

User Account

All Pages