1. Scot and Helen, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule (Links to an external site.) for married filing jointly).

a. If Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income?

b. What is their marginal rate if, instead, they report an additional $80,000 in deductions?

(Round your answers to 2 decimal places.)