Based on the personal income tax rate table above, answer all of the following questions.

(a) Mr. Smith has adjusted gross income of $55,000 and taxable income of $37,500. What is Mr. Smiths marginal tax rate (to the nearest tenth of a percent)?

(b) What is Smiths average tax rate (to the nearest tenth of a percent)?

(c) What is the average effective tax rate that Smith pays (to the nearest tenth of a percent)?

(d) How much would an additional personal deduction of $2000 reduce Smiths tax liability?

(e) How much would a tax credit of $1000 reduce Smiths tax liability?

(f) Computationally determine the value of X in the tax table.

Income Over: But NOT Over: Tax is: $0 2,300 3,400 4,400 6,500 8,500 10,800 12,900 15,000 18,200 23,500 28,800 34,100 41,500 55,300 81,800 $2,300 3,400 4,400 6,500 8,500 10,800 12,900 15,000 18,200 23,500 28,800 34,100 41,500 55,300 81,800 -0- Flat 11% $121 + 12% 241 + 14% 535 + 15% 835 + 16% 1,203 + 18% 1,581 + 20% 2,001 + 23% X + 26% 4,115 + 30% 5,705 + 34% 7,507 + 38% 10,319 + 42% 16,115 + 48% 28,835 + 50% of the Amount Over: $0 2,300 3,400 4,400 6,500 8,500 10,800 12,900 15,000 18,200 23,500 28,800 34,100 41,500 55,300 81,800