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 below)

Required:

1. How much federal tax will he owe?
2. What is his average tax rate?
3. What is his effective tax rate?
4. What is his current marginal tax rate?

Please show your steps and solve in Excel. Do not round intermediate calculations.

2023 Tax Rate Schedules

IndividualsSchedule X-Single

If taxable income is over:But not over:The tax is:$ 0$ 11,00010% of taxable income$ 11,000$ 44,725$1,100 plus 12% of the excess over $11,000$ 44,725$ 95,375$5,147 plus 22% of the excess over $44,725$ 95,375$ 182,100$16,290 plus 24% of the excess over $95,375$ 182,100$ 231,250$37,104 plus 32% of the excess over $182,100$ 231,250$ 578,125$52,832 plus 35% of the excess over $231,250$ 578,125$174,238.25 plus 37% of the excess over $578,125

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over:But not over:The tax is:$ 0$ 22,00010% of taxable income$ 22,000$ 89,450$2,200 plus 12% of the excess over $22,000$ 89,450$ 190,750$10,294 plus 22% of the excess over $89,450$ 190,750$ 364,200$32,580 plus 24% of the excess over $190,750$ 364,200$ 462,500$74,208 plus 32% of the excess over $364,200$ 462,500$ 693,750$105,664 plus 35% of the excess over $462,500$ 693,750$186,601.5 plus 37% of the excess over $693,750

Schedule Z-Head of Household

If taxable income is over:But not over:The tax is:$ 0$ 15,70010% of taxable income$ 15,700$ 59,850$1,570 plus 12% of the excess over $15,700$ 59,850$ 95,350$6,868 plus 22% of the excess over $59,850$ 95,350$ 182,100$14,678 plus 24% of the excess over $95,350$ 182,100$ 231,250$35,498 plus 32% of the excess over $182,100$ 231,250$ 578,100$51,226 plus 35% of the excess over $231,250$ 578,100$172,623.5 plus 37% of the excess over $578,100

Schedule Y-2-Married Filing Separately

If taxable income is over:But not over:The tax is:$ 0$ 11,00010% of taxable income$ 11,000$ 44,725$1,100 plus 12% of the excess over $11,000$ 44,725$ 95,375$5,147 plus 22% of the excess over $44,725$ 95,375$ 182,100$16,290 plus 24% of the excess over $95,375$ 182,100$ 231,250$37,104 plus 32% of the excess over $182,100$ 231,250$ 346,875$52,832 plus 35% of the excess over $231,250$ 346,875$93,300.75 plus 37% of the excess over $346,875