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ed nces Problem 02-13 (Algo) [LO 2-7] Country A levies an individual income tax with the following rate structure: Percentage Rate 10% 15 25
ed nces Problem 02-13 (Algo) [LO 2-7] Country A levies an individual income tax with the following rate structure: Percentage Rate 10% 15 25 30 Bracket Income from -0- to $20,000 Income from $20,001 to $75,000 Income from $75,001 to $160,000 Income in excess of $160,000 Ms. Slattery's annual taxable income for years 1 through 5 is $157,200. Ms. Ochoa's taxable income for years 1 through 4 is $19,000. In year 5, Ms. Ochoa wins a lottery, resulting in taxable income of $710,000 for this one year. Assume the tax rate bracket has not changed. Required: a. How much total income does each individual earn over the 5-year period? b. Compute each individual's average tax rate for the 5-year period. Complete this question by entering your answers in the tabs below. Required A Required B How much total income does each individual earn over the 5-year period? Ms. Slattery Ms. Ochoa Total Income
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