Using the marginal tax rates from your book

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Reference no: EM13945116

Kyle has been asked to serve as a consultant on a building project and can get paid his fee up-front or at the end of the long project. He has agreed to do the consulting work for a fee of $20,000. This year Kyle's taxable income is expected to be around $88,000, but next year Neville is will be dropping to part-time and expects his taxable income to be around $45,000. Using the Marginal Tax Rates from your book (pp. 106-107), Kyle can expect to pay about _________ this year and _________ next year on the $20,000 of additional income.

$5,000; $5,000

$5,000; $5,600

$5,600; $5,600

$5,600; $5,000

Reference no: EM13945116

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