Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

4. Dakota can work up to 4000 hours in a year at a wage rate of $10/hr. In 2021, Dakota worked 2000 hours a year.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
4. Dakota can work up to 4000 hours in a year at a wage rate of $10/hr. In 2021, Dakota worked 2000 hours a year. Use the tax brackets for 2021 to answer the following questions.2021 Tax Brackets Individual Taxpayers If Taxable Income Is Between: The Tax Due Is: 0 - $9,950 10% of taxable income $9,951- $40,525 $995 + 12% of the amount over $9,950 $40,526 - $86,375 $4,664 + 22% of the amount over $40,525 $86,376 - $164,925 $14,751 + 24% of the amount over $86,375 $164,926 - $209,425 $33,603 + 32% of the amount over $164,925 $209,426 - $523,600 $47,843 + 35% of the amount over $209,425 $523,601 $157,804.25 + 37% of the amount over $523,600 Married Individuals Filing Joint Returns and Surviving Spouses If Taxable Income Is Between: The Tax Due Is: 0 - $19,900 10% of taxable income $19,901 - $81,050 $1,990 + 12% of the amount over $19,900 $81,051 - $172,750 $9,328 + 22% of the amount over $81,050 $172,751 - $329,850 $29,502 + 24% of the amount over $172,750 $329,851 - $418,850 $67,206 + 32% of the amount over $329,850 $418,851 - $628,300 $95,686 + 35% of the amount over $418,850 $628,301 $168,993.50 + 37% of the amount over $628,300d. Draw Dakota's budget constraint with nonmarket time on the horizontal axis and consumption of market goods on the vertical axis. Show Dakota's optimal choice of TH and TM (this is how much Dakota actually chooses to work) on your graph.e. If Dakota marries their partner Dallas, who made $100,000 is 2021, draw Dakota's new budget constraint on your graph above (ignore Dallas's income except in determining Dakota's tax bracket)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting and Reporting a Global Perspective

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

4th edition

978-1408076866

Students also viewed these Economics questions