Chuck, a single taxpayer, earns $137,750 in taxable income and $15,500 in interest from an...
Question:
Chuck, a single taxpayer, earns $137,750 in taxable income and $15,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Required:
a. If Chuck earns an additional $51,500 of taxable income, what is his marginal tax rate on this income?
Marginal Tax Rate ........................ %
b. What is his marginal rate if, instead, he had $51,500 of additional deductions?
Marginal Tax Rate .......................... %
Definition of taxable income.
Taxable income is also known as gross income. Taxable income is the amount of money paid by an individual or an organization to the government in a particular period of time. The amounts included in the taxable income vary by country or the system used.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe US tax schedule for the year 2016 is considered.
$ 15,500 in the interest from the investment in the City of Heflin bonds is non-taxable.
a.The...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
What is a Marginal Tax Rate? - Definition & History
from
Chapter 24 / Lesson 8
8.1K
Learn about the history and concept of marginal tax rates in the United States, including how to calculate marginal income tax rates using formulas and examples.
Related to this Question
- Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations.
- Chuck, a single taxpayer, earns $82,000 in taxable income and $17,750 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations.
- 1) Chuck, a single taxpayer, earns $70,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. What is his current marginal tax rate? (Percentage amount without perce
- Chuck, a single taxpayer, earns $75,250 in taxable income and $26,250 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) a. If Chuck earns an additional $64,000 of taxable income, what is his marginal tax rate on th
- Chuck, a single taxpayer, earns $77,750 in taxable income and $29,250 in interest from an investment in the City of Heflin bonds. a. If Chuck earns an additional $57,250 of taxable income, what is his marginal tax rate on this income? b. What is his mar
- Chuck, a single taxpayer, earns $84,500 in taxable income, and $23,000 in interest, from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) If Chuck earns an additional $56,000 o
- Chuck, a single taxpayer, earns $79,750 in taxable income and $28,250 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) A) If Chuck earns an additional $50,750
- Chuck, a single taxpayer, earns $132,500 in taxable income and $18,500 in interest from an investment in City of Heflin bonds. a. If Chuck earns an additional $42,800 of taxable income, what is his marginal tax rate on this income? b. What is his marginal
- Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule) Required: a. If Chuck earns an additional
- Chuck, a single taxpayer, earns $77,750 in taxable income and $29,250 in interest from an investment in City of Heflin bonds. (Use the 2015 U.S. tax rate schedule.) Required: A. If Chuck earns an add
- Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. a. Using the U.S. tax rate schedule, how much federal tax will he owe? b. What is his average tax rate? c. What is his effective
- Chuck, a single taxpayer, earns $82,000 in taxable income and $17,750 in interest from an investment in the City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. If Chu
- Chuck, a single taxpayer, earns $87,500 in taxable income and $2,500 in interest from an investment in City of Heflin bonds. a. If Chuck earns an additional $5,000 of taxable income, what is his marg
- Chuck, a single taxpayer, earns $42,000 in taxable income and $10,900 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) a) How much federal tax will he owe?
- Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule, how much federal tax will he owe? What i
- Chuck, a single taxpayer, earns $57,500 in taxable income and $19,500 in interest from an investment in City of Heflin bonds. (Do not round intermediate calculations. Round your answers to 2 decimal p
- Chuck, a single taxpayer, earns $84,500 in taxable income and $23,000 in interest from an investment in City of Heflin bonds. If Chuck earns an additional $56,000 of taxable income, what is his margin
- Campbell, a single taxpayer, earns $207,500 in taxable income and $13,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calcul
- Campbell, a single taxpayer, earns $404,500 in taxable income and $8,500 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round "Federal tax" to 2 decimal places.) How mu
- Campbell, a single taxpayer, earns $205,000 in taxable income and $6,000 in interest from an investment in State of New York bonds. What is the marginal tax rate? (Use the U.S. tax rate schedule.) (D
- Campbell, a single taxpayer, earns $241,500 in taxable income and $10,000 in interest from an investment in State of New York bonds. (Use the 2015 U.S. tax rate schedule.) (Do not round intermediate c
- Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2014, what is his effective tax rate (rounded)? A) 15.00% B) 15.19% C) 21.62% D) 19
- Marc, a single taxpayer, earns $202,500 in taxable income and $6,250 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2015, what is his effective tax rate? \\\ A. 32.55% B. 24.16% C. 21.89% D. None
- Marc, a single taxpayer, earns $294,500 on taxable income and $9,050 in interest from an investment in the City of Birmingham Bonds. Using the US tax rate schedule for 2016, what is his current marginal tax rate?
- Campbell, a single taxpayer, earns $399,000 in taxable income and $2,500 in interest from an investment in State of New York bonds. (Use the 2015 U.S. tax rate schedule.) (Do not round intermediate ca
- Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2014, what is his average tax rate (rounded)? A) 28.00% B) 16.72% C) 21.18% D) 25.0
- Lillian, a single taxpayer, had the following income and deductions for the tax year 2018. Compute Lillian's marginal, average and effective tax rates. | __Income__ | | Salary | $90,000 | Business Income | 24,000 | Interest income from taxable bonds
- Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2014, how much federal tax will he owe? A) $28,000 B) $21,175.75 C) $16,712.50 D)
- Jorge and Anita, married taxpayers, earn $150.000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule). (Do not round Intermediate cal
- Use the tax rate schedule for 2016. Jorge and Anita, married taxpayers, earn $404,500 in taxable income and $50,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate sche
- Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. a. How much federal tax will she owe? b. What is her average tax rate? c. What is her effective tax rate? d. What is her cu
- Marc, a single taxpayer, earns $52,000 in taxable income and $1450 in interest from an investment in the city of Birmingham Bonds. Using the US tax rate schedule for year 2016, how much federal tax will he owe?
- Loriann's, a single taxpayer, had the following income and deductions for the tax year: Income: Salary $61,000 Business income $30,000 Interest income from taxable bonds $15,000 Tax-exempt bond interest $3,500 Total income $109,500 Deductions: Business
- Scot and Vidia, married taxpayers, earn $62,500 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule. Do not round intermediate calculati
- Compute gross income for a single (unmarried) taxpayer who has income that consists of: Gross salary $19,600 Interest on bank savings account 1,410 Interest on municipal bond 150 Interest on corporate bond 250 Ordinary dividend income from mutual fund 300
- Jimbo, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Boston Bonds. Using the U.S. tax rate schedule for year 2016, how much federal tax will h
- Tax Rates. Latesha, a single taxpayer, had the following income and deductions for the tax year 2015: Income: Salary $80,000 Business Income 25,000 Interest income from bonds 10,000 Tax-exempt bo
- Scot and Vidia, married taxpayers, earn $324,500 in taxable income and $5,000 in interest from an investment in the City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). (Do not round intermediate calculations. Round your answe
- Latesha, a single taxpayer, had the following income and deductions for the tax year 2019: Income: Salary $100,000 Business Income 25,000 Interest income from taxable bonds 10,000 Tax-exempt bond interest 5,000 Total income 140,000 Deductions: Business e
- Scot and Vidia, married taxpayers, earn $187,500 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
- Haag Cop's 2011 income statement showed pretax accounting income of $750,000. To compute federal income tax liability, the following 2011 data are provided: Income from exempt municipal bonds $30,000 Depreciation deducted for tax purposes in excess of de
- Campbell, a single taxpayer, earns $212,500 in taxable income and $10,500 in interest from an investment in State of New York bonds. How much tax does he owe?
- Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,650 in investment expenses. They also incur $5,750 of investment interest expense during the year. The Porters' income for the year consists of $183,000 in
- During the fiscal year 2012, Dioubate Cie earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the following items would be increased by the municipal bond revenue? A. Pre-Tax Income B. Income Tax Expense C. Taxable
- Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. If Marc earned an additional $80,000, what would his 2014 marginal tax rate be on the $80,000 (rounded)? A) 28.00% B) 26.26%
- Stephanie, a taxpayer in the 28% marginal tax bracket, borrows $100,000 at 7% interest to invest in 6% tax-exempt municipal bonds (annual loan interest expense is $7,000). What is Stephanie's interest expense deduction? a. $0. b. $1,000. c. $6,000. d. $7,
- Scot and Vidia, married taxpayers, earn $15,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. If Scot and Vidia earn an additional $5,000 of taxable income, what is their marginal tax rate on this income? Tax rate Mar
- Assume the following facts for Moore Company in 2015: Book income before tax: $800,000. The following items were included in income: \S Interest income of $80,000 was received from an investment in municipal bonds. This income is exempt for tax purposes
- For this calendar year, The Olsen Machine Company's net income is $1,000,000, its interest expense is $275,000, and its income taxes expense is $225,000. Calculate Olsen s times interest earned ratio to four decimal places.
- In 2015, David, a single 18-year old taxpayer, received a salary of $3,600 and interest income of $1,800. He had $600 in itemized deductions. Calculate David's taxable income assuming he is (a) self-s
- Martin and Joanne filed a joint tax return. Their combined income and deductions are $150,000 salary income, $4,500 municipal bond interest income, $5,000 long-term capital gains, and $20,000 allowable itemized deductions. Calculate their taxable income a
- Tax Rates. Latesha, a single taxpayer, had the following income and deductions for the tax year 2016: INCOME: |Salary |$80,000 |Business Income |25,000 |Interest income from bonds |10,000 |Tax-exe
- Home Depot's income before interest expense and income taxes was $5,909 million, and interest expense was $37 million. Calculate Home Depot's times interest earned.
- Scot and Vidia, married taxpayers, earn $90,000 in taxable income and $5,000 in interest from an investment in the City of Tampa bonds. a. If Scot and Vidia earn an additional $78,750 of taxable income, what is their marginal tax rate on this income? b.
- Scot and Vidia, married taxpayers, earn $246,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. 1) If Scot and Vidia earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? 2) H
- Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax
- Lillian, a single taxpayer, had the following income and deductions for the tax year 2018. Compute Lillian's taxable income and federal tax liability for 2018. | __Income__ | | Salary | $90,000 | Business Income | 24,000 | Interest income from taxable
- Moore Company had book income before tax of $800,000 in 2015. The following items were included in book income before tax: Tax-exempt municipal bond interest income of $80,000. Rent income of $20,000 that was collected and included in income for tax pur
- Gary and Tracy file a joint return for the 2012 tax year. Their adjusted gross income is $65,000. They had net investment income of $9,000. In 2012, they had the following interest expenses. \\ - Personal credit card interest: $3,000. - Home mortgag
- Jorge and Anita, married taxpayers, earn $187,500 in taxable income and $27,500 in interest, from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, ho
- Jorge and Anita, married taxpayers, earn $97,500 in taxable income and $52,500 in interest from an investment in City of Heflin bonds. Using the 2015 U.S. tax rate schedule for married filing jointly,
- Boyd Salzer, an unmarried individual, has $238,700 AGI consisting of the following items: Salary $209,500 Interest income 5,500 Dividend income 9,450 Rental income from real property 14,250 a. Compute Mr. Salzer's Medicare contribution tax. b. Compute th
- Assume Vandell, an individual taxpayer, is in a 25 percent tax bracket. He invests in Otay Mesa Water District Bonds that pay 4.5 percent interest. What interest on taxable would provide the same after-tax return to Vandell?
- Income before taxes = $900,000 Income before taxes included the following: Interest income of $80,000 (from municipal bonds) Rental income was collected in advance in 2013 and earned in 2014 = $20,000 Depreciation per books = $40,000 and per income taxes
- Scot and Vidia, married taxpayers, earn $84,500 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). a. If Scot and Vidia earn an additional $22,000 of taxable in
- In 2014, Justin, a single 18-year old taxpayer, received a salary of $1,800 and interest income of $1,600. He had $600 in itemized deductions. Calculate Justin's taxable income assuming he is (a) self
- Jorge and Anita, married taxpayers, earn $406,000 in taxable income and $67,500 in interest from an investment in the City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly. 1) How much federal tax will they owe? 2) What is th
- Samuel, a single taxpayer, has provided you with the following tax information for the 2015 tax year: Salary Any Bank, USA savings interest State of Ohio revenue bonds Capital gain on stock held, 11 m
- Samuel, a single taxpayer, has provided you with the following tax information for the 2015 tax year: Salary $150,000 Any Bank, USA savings interest 1.000 State of Ohio revenue bonds 500 Capital gain on stock held 11 mo
- Chuck is single and has no dependents. He does not itemize deductions. In 2015, he claims a $4,000 personal exemption and records taxable income of $120,000. Chuck's AMT preferences total $51,000. What is Chuck's AMTI for the year?
- Haag Corp.'s 2021 income statement showed a pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2021 data are provided: Income from exempt municipal bonds $100,000 Depreciation deducted for tax purposes in ex
- What is the gross income for a single taxpayer that has: Gross salary $19,600 Interest on bank savings account 1,410 Interest on municipal bond 150 Interest on corporate bond 250 Ordinary dividend income from mutual fund 300 Cash prize in State of I
- Compute the 2019 tax liability and the marginal and average tax rates for the following taxpayers. a. Chandler, who files as a single taxpayer, has taxable income of $150,400. b. Lazare, who files as a head of household, has taxable income of $54,200.
- Tank, a single taxpayer, has AGI of $55,000 which includes $1,000 of qualified dividends. Tank has $7,000 of itemized deductions. What is his 2016 federal income tax? a. $6,694 b. $7,694 c. $6,544
- All of the following statements are true except: A) Under the cash method, prepaid income such as rent is usually taxed when received rather than when earned. B) Municipal bond interest is taxable on a state tax return. C) Alimony paid by the taxpayer
- During the current year, Plankton, a single taxpayer, reports the following items income of income and expenses Income Salary 86,000 Tax Exempt interest 1,300 Bank account interest 2,300
- Lillian, a single taxpayer, had the following income and deductions for the tax year 2018. For tax planning purposes. which of the following three rates is the most important: marginal, average or effective tax rate? | __Income__ | | Salary | $90,000
- Dews, Inc., an S corporation in Norfolk, Virginia, has revenues of $700,000, taxable interest of $580,000, operating expenses of $350,000, and deductions attributable to the interest income of $240,000. Calculate any passive investment income penalty tax
- Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. 1. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? 2. What is their avera
- In 2017, AutoUSA Inc. received $4,600,000 of book income, including $20,000 of interest income from tax-exempt municipal bonds. AutoUSA reported $3,600,000 of regular business expenses. If it made $350,000 of estimated tax payments (prepayments) throughou
- During the current year, Donna, a single taxpayer, reports the following items income of income and expenses: Income: Salary $86,000 Municipal bond interest 1,300 Bank account interest 2,300 Alimony received 24,000 Capital gain on an asset held less
- A taxpayer can invest $5,000 in a common stock that pays no dividends but appreciates at a rate of 8%. The taxpayer's tax rate is 30%. He plans to sell the stock after 30 years. a. Find the after-tax accumulation and the annualized after-tax rate of retur
- Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $3,500 in employment-related miscellaneous itemized deductions. They also incur $5,500 of investment interest expense during the year. The Porters' income for
- Taylor Company had net income of $50,000, paid income taxes of $20,000, and before tax interest expense of $10,000. What was Taylor's times interest earned ratio? a. 5 b. 6 c. 7 d. 8 e. none of these
- Taylor Company had net income of $50,000, paid income taxes of $20,000, and had before tax interest expense of $10,000. What was Taylor's times interest earned ratio? A. 5 B. 6 C. 7 D. 8 E. None of these.
- Taylor Company had a net income of $50,000, paid income taxes of $20,000, and had before tax interest expense of $10,000. What was Taylor's times interest earned ratio? A. 5 B. 6 C. 7 D. 8 E. none of these
- For the 2015 tax year, Kevin and Janet are married and file a joint return. They have Social Security benefits of $13,000, and their adjusted gross income is $20,000. They also received $30,000 in tax-free municipal bond interest. How much, if any, of the
- Mickey and Jenny Porter file a joint tax return, and they itemize deductions. Porter incur $2,000 in employment-related miscellaneous itemized deductions. They also incur $3,000 of investment interest expense during the year. Porter's income for the year
- John, a single 67-year old taxpayer, had the following income and deductions during 2015: Salary $60,000 Interest on bank account $400 Interest on the city of Denver bond $500 Qualified dividends $1,500 Alimony paid to ex-wife $2,000 Itemized Deductions $
- Based on the amounts of taxable income below, compute the federal income tax payable in 2013 on each amount assuming the taxpayer is married filing a joint return. Also, for each amount of taxable income, compute the average tax rate and marginal tax rate
- Scot and Vidia, married taxpayers, earn $95,000 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
- Calculate Taxable Income for Samantha and Stuart Smith based on the following Information: The Smiths are married and file a joint return Salary $200.000 State of Tennessee Bond Interest $10,000 F
- Cullumber Corp.'s 2018 income statement showed pretax accounting income of $2,600,000. To compute the federal income tax liability, the following 2018 data are provided: Income from exempt municipal bonds $101,000 Depreciation deducted for tax purposes i
- Jolene receives tax-exempt interest of $33,000 on bonds that are classified as private activity bonds. She properly excludes the $33,000 from her gross income for regular income tax purposes. Jolene asks for your advice on the treatment of the interest in
- Based on the amounts of taxable income below, compute the federal income tax payable in 2016 on each amount assuming the taxpayers are married filing a joint return. Also, for each amount of taxable income, compute the average tax rate and the marginal ta
- Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, what is their current marginal tax rate?
- Mr. Brown is in the 10 percent federal income tax bracket and wants to invest $10,000 in interest-earning assets. Mr. Black is in the 35 percent bracket and wants to invest $15,000. The current rate on a typical high- quality tax-exempt municipal bond is
- Computation of Taxable Income, Jim and Pat are married and file jointly. In 2016, Jim earned a salary of $46,000. Pat is self employed. Her gross income was $49,000 and her business expenses totaled $24,000. Each contributed $5,000 to a deductible IRA. Th
- In 2015, Nadia has $100,000 ot regular taxable income. She itemizes her deductions as follows: real property taxes of $1,500, state income taxes of $2,000, and mortgage interest expense of $10,000 (no
- For its first year of operations, Oakwood Corporation had pretax accounting income of $500,000 and taxable income of $410,000. The book-tax difference was due to two items: $10,000 of nontaxable municipal bond interest income, and depreciation expense whi
Explore our homework questions and answers library
Browse
by subject