ences Problem 1-35 (LO 1-3) (Algo) Chuck, a single taxpayer, earns $80,200 in taxable income and $15,600 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.) a Marginal tax rate b. Marginal tax rate % % If taxable income is over: But not over: $ 9,950 $ 40,525 $ 0 $ 9,950 $ 40,525 $ 86,375 $ 86,375 $164,925 $164,925 $209,425 $523,600 $209,425 $523,600 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157.804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 0 $ 19,900 $ 81,050 $172,750 $329,850 $418,850 $628,300 $ 19,900 $ 81,050 The tax is: 10% of taxable income $1.990 plus 12% of the excess over $19,900 $172,750 $9,328 plus 22% of the excess over $81,050 $329,850 $29,502 plus 24% of the excess over $172,750 $418,850 $67,206 plus 32% of the excess over $329,850 $628,300 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over $ 0 $ 14,200 $14,200 $ 54,200 $ 54,200 $ 86,350 $ 86,350 $164,900 $209,400 $523,600 $164,900 $209,400 $523,600 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over 0 $ 9,950 $ 9,950 $ 40,525 $ 40,525 $ 86,375 $ 86,375 $164,925 $209,425 $314,150 $164,925 $ 209,425 $314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $ 9.950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150 O tome