Jorge and Anita, married taxpayers, earn $143,500 in taxable income and $52,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: If Jorge and Anita earn an additional $106,000 of taxable income,

A) what is their marginal tax rate on this income?

B) What is their marginal rate if, instead, they report an additional $106,000 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)

Schedule X-Single If taxable income is over: But not over: The tax is: S 9,525 S 38,700 S 82,500 $157,500 $200,000 $500,000 $ 9,525 $ 38,700 $ 82,500 $157,500 $200,000 $500,000 | 10% of taxable income | $952.50 plus 12% ofthe excess over $9,525 |$4,453.50 plus 22% of the excess over $38.700 | $ 14,089.50 plus 24% of the excess over $82,500 | $32,089.50 plus 32% of the excess over $157,500 | $45.689.50 plus 35% of the excess over $200,000 $150,689.50 plus 37% ofthe excess over $500,000 Schedule Y-l-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: 19,050 S 77.400 $165,000 $315,000 $400,000 S600,000 $ 19,050 $ 77,400 $165,000 $315.000 $400,000 $600,000 | 10% of taxable income | $1,905 plus 12% of the excess over $19,050 | $8.907 plus 22% of the excess over $77,400 | $28.179 plus 24% of the excess over $165,000 | $64,179 plus 32% of the excess over $315,000 |$91,379 plus 35% of the excess over $400,000 $161,379 plus 37% of the excess over $600,000