A sole proprietorship firm has taxable income of $160,200. Assume this is the sole source of income for the owner. Taxable Income Tax Rate

$ 0 9,525 10%

9,526 38,700 12%

38,701 82,500. 22%

82,501 157,500 24%

157,500 200,000 32%

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a) What is average income tax rate?

b) What is additional tax if the firms income increases by $12,300?