If Your Taxable Income Is Up to $9,525 $9,525 $38,700 2018 Individual Tax Rates Single Individuals You Pay This Amount on the Base of the Bracket $0 Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at Top of Bracket 10.0% 10.0% 952.50 12.0 11.5 $38,700 $82,500 4,453.50 22.0 17.1 $82,500 $157,500 14,089.50 24.0 20.4 $157,500 $200,000 32,089.50 32.0 22.8 $200,000 $500,000 45,689.50 35.0 30.1 Over $500,000 150,689.50 37.0 37.0 If Your Taxable Income Is You Pay This Amount on the Base of the Bracket 50 $19,050-$77,400 1,905.00 Standard deduction for individual: $12,000 Up to $19,050 Married Couples Filing Joint Returns Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at Top of Bracket 10.0% 11.5 10.0% 12.0 $77,400 $165,000 8,907.00 22.0 171 $165,000-$315,000 28,179.00 24.0 20.4 $315,000 $400,000. 64,179.00 32.0 22.8 $400,000 - $600,000 91,379.00 35.0 Over $600,000 161,379.00 37.0 26.9 37.0 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $117,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $4,300. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent. $ Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend income. Select income is taxed as ordinary income; however, -Select- income is taxed more favorably. 50% of Select received is excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, Select payments are regarded as an expense so they are tax deductible; however, Select payments are not tax deductible. Consequently, our tax system encourages Select financing over -Select- financing. Depreciation expense is tax deductible, so the larger the depreciation, the select the taxable income, the select the taxes, and the Select the firm's operating cash flow