Jean and Jim are married and file a joint return. They expect to have $415,000 of taxableincome in 2015 and are considering whether to purchase a personal residence that would provide additional tax deductions of $90,000 for mortgage interest and real estate taxes in 2015.

(a) What is their marginal tax rate for making this decision?

(b) What is their tax savings if they acquire the residence?

The 2015 tax rate schedules can be found at https://www.irs.gov/irb/2014-47_IRB/ar14.html