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7. [6 points] Consider the following tax tables. Table 1. Single Taxable Income Tax Brackets and Rates, 2016 If taxable income is over- but not
7. [6 points] Consider the following tax tables. Table 1. Single Taxable Income Tax Brackets and Rates, 2016 If taxable income is over- but not over the tax is: $0 $9,275 $9,275 $37,650 10% of the amount over $0 $927.50 plus 15% of the amount over $9,275 $37,650 $91,150 $190,150 $413,350 $91,150 $190,150 $413,350 $415,050 $415,050 no limit $5,183.75 plus 25% of the amount over $37,650 $18,558.75 plus 28% of the amount over $91,150 $46,278.75 plus 33% of the amount over $190,150 $119,934.75 plus 35% of the amount over $413,350 $120,529.75 plus 39.6% of the amount over $415,050 Suppose someone had an annual Gross income of $52,000 and a standard deduction of $13,750. Calculate the following (Show the formulas or equations that you use to calculate them) a. Calculate the Total Tax owed: b. Effective Tax Rate: C. Last year, Bill owed $75,000 in taxes. Show your calculations to determine his original income (before deductions)
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