Solution-What is the marginal and average tax rate for the

What is the marginal and average tax rate for the jaguars

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Reference no: EM132028151

1. The Jacksonville Jaguars earn $175,000 in ordinary income in 2012. They also receive $150,000 in interest income and make a $50,000 payment out. Assuming a flat tax rate of 33%, calculate their taxes paid and after-tax profits.

2. Repeat Problem #2, but use the following tax brackets:

Income

Bracket Tax Rate

$0 to $35,000

$35,001 to $85,000

10%

$85,001 to $110,000

15%

$110,001 to $155,000

25%

> $155,001

42%

3. What is the marginal and average tax rate for the Jaguars in this case? Which tax structure (flat or bracketed) would they prefer, based on your calculations?

Reference no: EM132028151

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What is the marginal and average tax rate for the jaguars

Reference no: EM132028151

Reference no: EM132028151

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