Assume 2020 for the tax year, Allen, a single taxpayer, operates two illegal business operations and has the following items of income and expense. Assume Allen does not have enough itemized deductions to use the itemized deductions for his tax return. Assume that these businesses were treated as Schedule C income.

Income from drug running operation		$800,000
Expenses:
	Rent	24,000
	Utilities	9,000
	Bribes to police	55,000
	Medical expense	5,000
	Legal fees related to business	25,000
	Depreciation	30,000
	Illegal kickbacks	30,000
	Cost of goods sold	300,000

Income cyber hacking operations.		$200,000
Expenses:
	Rent	4,000
	Utilities	3,000
	Bribes to police	7,000
	Legal fees related to business	8,000
	Depreciation	5,000
	Illegal kickbacks	10,000

What is Allens AGI _____________________________________

What is Allens Taxable Income ____________________________

What is Allens Tax Liability _______________________________

What is Allens Effective Tax Rate ___________________________

What is Allens Marginal Tax Rate___________________________