Chuck, a single taxpayer, earns $87,250 in taxable income and $32,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)

Required:

1.If Chuck earns an additional $63,750 of taxable income, what is his marginal tax rate on this income?

2.What is his marginal rate if, instead, he had $63,750 of additional deductions?

(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)

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 $970 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 $14,382.50 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 $46,628.50 plus 35% of the excess over $204,100 $510,300 $153,798.50 plus 37% of the excess over $510,300