Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule below) (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. If Chuck earns an additional $53,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $53,000 of additional deductions?

2016 Federal Tax Rate Schedule Schedule X-Single Schedule Z-Head of Household If taxable income is over If taxable income is over But not over $ 13,250 $ 50,400 But not over The tax iS: The tax is 10% of taxable income $92750 plus 15% of the excess over $9,275 $5,183.75 plus 25% of the excess over $37650 $18,558.75 plus 28% of the excess over $91,150 $46,278.75 plus 33% of the excess over $190,150 $119,934.75 plus 35% of the excess over $413,350 $120,529.75 plus 39.6% of the excess over $415,050 10% of taxable income $1,325.00 plus 15% of the excess over $13,250 $6,89750 plus 25% of the excess over $50,400 $26,835.00 plus 28% of the excess over $130,150 $49,41700 plus 33% of the excess over $210,800 $116,258.50 plus 35% of the excess over $413,350 $125,936.00 plus 39.6% of the excess over $441,000 0 $ 9,275 0 9,275 37,650 $ 91,150 $190,150 $413,350 $415,050 $ 37650 $ 91,150 $190,150 $413,350 $415,050 $ 13,250 $ 50,400 $130,150 $210,800 $413,350 $441,000 $ $130,150 $210,800 $413,350 $441,000 $ Schedule Y-1-Married Filing Jointly of Qualifying Widow(er) Schedule Y-2-Married Filing Separately If taxable income is over: But not If taxable income is over The tax is But not over $ 18,550 over The tax iS: 10% of taxable income $92750 plus 15% of the excess over $9,275 $5,183.75 plus 25% of the excess over $37650 $14,758.75 plus 28% of the excess over $75,950 $25,895.75 plus 33% of the excess over $115,725 $55,909.25 plus 35% of the excess over $206,675 $65,289.25 plus 39.6% of the excess over $233,475 0 $ 9,2 75 10% of taxable income $1,855.00 plus 15% of the excess over $18,550 $10,36750 plus 25% of the excess over $75,300 $29,51750 plus 28% of the excess over $151,900 $51,791.50 plus 33% of the excess over $231,450 $111,818.50 plus 35% of the excess over $413,350 $130,578.50 plus 39.6% of the excess over $466,950 $ $ 37,650 $75,950 $115,725 9,275 $ 37650 $75,950 $115,725 $206,675 $233,475 0 $ 18,550 $ 75,300 $151,900 $231,450 $413,350 $466,950 75,300 $151,900 $231,450 $413,350 $466,950 $206,675 $233,475