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Jorge and Anita, married taxpayers, earn $152,500 in taxable income and $42,500 in interest from an investment in City of Heflin bonds. (Use the
Jorge and Anita, married taxpayers, earn $152,500 in taxable income and $42,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $102,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $102,500 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a Marginal tax rate b. Marginal tax rate % % Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $ 215,950 $ 323,925 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $ 215,950 $ 323,925 The tax is: 10% of taxable income $1,027.50 plus 12% of the excess over $10,275 $4,807.50 plus 22% of the excess over $41,775 $15,213.50 plus 24% of the excess over $89,075 $34,647.50 plus 32% of the excess over $170,050 $49,335.50 plus 35% of the excess over $215,950 $87,126.75 plus 37% of the excess over $323.925
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