What is their marginal tax rate on this income

Assignment Help Financial Accounting

Reference no: EM131219114

Scot and Vidia, married taxpayers, earn $92,500 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). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a. If Scot and Vidia earn an additional $70,000 of taxable income, what is their marginal tax rate on this income?

b. How would your answer differ if they, instead, had $70,000 of additional deductions?

Reference no: EM131219114

Questions Cloud

The direct labor efficiency variance : The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance is:

Compute total assets and current assets : Pfister Corporation has Current Assets of $200,000, Current Liabilities of $150,000, Total Liabilities of $340,000 and Owners' Equity of $300,000. Compute Total Assets. Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150..

Impact on operating income for eliminating business segment : Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $1,000. The division sales for the year were $1,046,000 and the variable costs were $856,000. The fixed costs of the divi..

Assuming that the income effect is descriptive : Song earns $152,500 taxable income as an interior designer and is taxed at an average rate of 15 percent (i.e., $22,875 of tax). a. If Congress increases the income tax rate such that Song’s average tax rate increases from 15 percent to 20 percent, h..

What is their marginal tax rate on this income : Scot and Vidia, married taxpayers, earn $92,500 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. If Scot and Vidia earn an additional $70,000 of taxable income, what is their marginal tax rate on this income?

What documentary evidence is available to the auditor : Sea Duds is a retail clothing store specializing in resort clothing. The company purchases finished goods-apparel and accessories-and its other payments are for typical operating costs such as rent, utilities, and payroll. Identify the controls prese..

What average tax rate will result in increase in tax revenue : Congress would like to increase tax revenues by 5 percent. Assume that the average taxpayer in the United States earns $40,000 and pays an average tax rate of 20 percent. a. If the income effect is in effect for all taxpayers, what average tax rate w..

What is the effective annual interest rate on the loan : If you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, what is the APR of the loan? What is the effective annual interest rate on the loan?

Businesses using the resources of a venture capitalist : Assess the challenges for businesses using the resources of a venture capitalist, given that significant returns on the investment are likely to be impacted by the firm. Indicate how a business can manage these expectations. Provide support for your ..

User Account

All Pages