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asprague24 asprague24
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A week ago

Question 1.

If your income is $40,000 and you pay taxes of $4,650, what is your average tax rate? Show your work.



Question 2.

Table 18-10

Income Tax BracketTax Rate
on the first $6,000 of taxable income10%
on the next $14,000 of taxable income15%
on the next $24,500 of taxable income25%
on the next $30,500 of taxable income30%

Table 18-10 shows the income tax brackets and tax rates for single taxpayers in Bauxhall.



Refer to Table 18-10. A tax exemption is granted for the first $10,000 earned per year. Suppose you earn $75,000.

a.

What is the amount of taxes you will pay?

b.

What is your average tax rate?

c.

What is your marginal tax rate?
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zachcarytcriszachcarytcris
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Posts: 310
A week ago
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Answer 1

Average tax rate = $4,650/$40,000 = 0.11625 or 11.625 percent.



Answer 2

a.

($6,000 × 0.10) + ($14,000 × 0.15) + ($24,500 × 0.25) + ($20,500 × 0.30) = $600 + $2,100 + $6,125 +
$6,150 = $14,975

b.

approximately 20%

c.

30%
1

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Appreciate the effort, thank you!
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You're very welcome ... please mark the topic solved when you get a chance
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