Campbell, a single taxpayer, earns $393,000 in taxable income and $12,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule).

Required:

1. If Campbell earns an additional $27,500 of taxable income, what is her marginal tax rate on this income?
2. What is her marginal rate if, instead, she had $27,500 of additional deductions?

(For all requirements, do not round intermediate calculations.)

2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 S970 plus 12% of the excess over $9.700 $ 39,475 $ 84,200 $4.543 plus 22% of the excess over $39.475 $ 84,200 $160,725 S14,382.50 plus 24% of the excess over $84.200 $160,725 $204,100 $32.748.50 plus 32% of the excess over $160.725 $204,100 $510,300 S46.628.50 plus 35% of the excess over S204.100 $510,300 S153.798.50 plus 37% of the excess over $510,300 a. % Marginal tax rate Marginal tax rate b. %