Chuck, a single taxpayer, earns $80,600 in taxable income and $13,100 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.)

A. How much federal tax will he owe?

B. What is his average tax rate?

C. What is his effective tax rate?

D. What is his current marginal tax rate?

show work please

question 2

Hugh has the choice between investing in a City of Heflin bond at 7.7 percent or investing in a Surething Incorporated bond at 10.7 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, in which bond should he invest?

hugh should invest in the