Campbell, a single taxpayer, earns $187,500 in taxable income and $4,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) Required: How much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate?

2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 9.875 $ 9.875 $ 40.125 $ 40,125 SAS 525 $ 85,525 $163 200 $163,300 $207,350 $207,350 $518,400 $518,400 The tax is: 10% of taxable income $987.50 plus 12% of the excess over $9.875 $4.617.50 plus 22% of the excess over $40,125 $14,605.50 plus 24% of the excess over $85,525 $33,271.50 plus 32% of the excess over $163,300 $47,367.50 plus 35% of the excess over $207,350 $156,235 plus 37% of the excess over $518,400 Schedule Y-1. Married Filing Jointly or Qualifying Widower) If taxable income is over: But not over: The tax is: $ 0 $ 19.750 10% of taxable income $ 19,750 $ 80250 $1.975 plus 12% of the excess over $19,750 $ 80 250 $171.050 $9.235 plus 22% of the excess over $80,250 $171.050 $326,600 $29,211 plus 24% of the excess over $171.050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622.050 $94,735 plus 35% of the excess over $414,700 $622.050 $167.107.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,100 $ 14,100 $ 53,700 $ 53,700 $ 85,500 $ 85,500 $163,300 $ 163,300 $207,350 $207,350 $518.400 $518,400 The tax is: 10% of taxable income $1.410 plus 12% of the excess over $14,100 $6.162 plus 22% of the excess over $53,700 $13,158 plus 24% of the excess over $85,500 $31,830 plus 32% of the excess over $163,300 545,926 plus 35% of the excess over $207,350 $154.793.50 plus 37% of the excess over $518,400 Schedule Y-2.Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9.875 10% of taxable income $ 9.875 $ 40,125 5987.50 plus 12% of the excess over $9,875 $ 40,125 $ 85.525 54.617.50 plus 22% of the excess over $40,125 $ 85.525 $163,300 $14,605.50 plus 24% of the excess over $85.525 $163 200 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 S311.025 547,367 50 plus 35% of the excess over $207,350 S311,025 $83,653.75 plus 37% of the excess over $311,025