Marginal tax rates Using the tax rate schedule given here, perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $16,000; $61,600; $90,900; $155,000; $249,000; $455,100; and $1 million. b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). a. The marginal tax rate for earnings before taxes of $16,000 is%. (Round to the nearest integer.) The total tax liability for earnings before taxes of $16,000 is $ (Round to the nearest dollar.) %. (Round to the nearest integer.) (Round to the nearest dollar.) (Round to the nearest dollar.) The marginal tax rate for earnings before taxes of $61,600 is The total tax liability for earnings before taxes of $61,600 is $ The marginal tax rate for earnings before taxes of $90,900 is %. (Round to the nearest integer.) The total tax liability for earnings before taxes of $90,900 is $ (Round to the nearest dollar.) The marginal tax rate for earnings before taxes of $155,000 is%. (Round to the nearest integer.) The total tax liability for earnings before taxes of $155,000 is $ The marginal tax rate for earnings before taxes of $249,000 is%. (Round to the nearest integer.) The total tax liability for earnings before taxes of $249,000 is $ (Round to the nearest dollar.) The marginal tax rate for earnings before taxes of $455,100 is %. (Round to the nearest integer.) The total tax liability for earnings before taxes of $455,100 is $ The marginal tax rate for earnings before taxes of $1 million is%. (Round to the nearest integer.) The total tax liability for earnings before taxes of $1 million is $. (Round to the nearest dollar.) (Round to the nearest dollar.) b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis). The correct shape of the curve is: (Select the best answer below.) O A. O C. 40- 35- 30- 25- 20- 15- 10-6 0 Marginal Tax Rate (%) Marginal Tax Rate (%) 40- 35- 30- 25- 20+ 15- 10+ 0 1,000 500 Pretax Income ($000) 500 1,000 Pretax Income ($000) Q G B. Q OD. The relationship between these variables is that marginal tax rates maximum rate of 37% is attained. The marginal tax rate actually bracket is reached, so the curve is not smooth. Marginal Tax Rate (%) Marginal Tax Rate (%) 40- 35- 30- 25 20+ 15- 10 0 40 35- 30- 25- 20- 15- 10+ 0 500 1,000 Pretax Income ($000) 500 1,000 Pretax Income ($000) Q G Q E O O as pretax incomes increase until the in a step-like fashion as each tax

Marginal tax rates Using he tax rate schedule gives hert o , perlonn the following $10,900,$155,050,$289.000;$455,100, and $1 milion. a. The marginal tax rate far eamings belore taxes of $16000 is 6. Gound is the rearest inleger: The total tax lisblity for eamings belore tanst of 380.900 in 1 Phoung to the mosbet boltar) The marjoal tax rate for earminge before taxas of $555.000 is 5. Feound is the nearest inthoer: The margina tax rate for eamings before taxes of $249000 is K. Round to the nearest integer: The totat tox liablity for eamings belore taxes of 5249.000is1 (Round o the rearsst dater) The marghal tak inle for bavings before tanes of 3455,700 ia K. Found so the nearest integer! The botal tax labblity for eamings belore tanes of \$65, 100 is 5 (Round so the rearsit dolar) The marghal tax rate for eamugs before tases of 51 milion is 4. (Round to the nearest intager) The total tar liablity for eamings before tanas of 51 millon is 1 ( Alound to the nearest dollar) The correct shase of the curve is: (Select the best anoet below) i c 0 The refaiconip beteen these variables is nat mavginal tax rates as perar incomes increase arti the maximum rale of 37% is atsaited. The marginal tax rake actualy no step-ike tanhion as each tak brackat is reached, so the caine is nat smoch. Marginal tax rates Using he tax rate schedule gives hert o , perlonn the following $10,900,$155,050,$289.000;$455,100, and $1 milion. a. The marginal tax rate far eamings belore taxes of $16000 is 6. Gound is the rearest inleger: The total tax lisblity for eamings belore tanst of 380.900 in 1 Phoung to the mosbet boltar) The marjoal tax rate for earminge before taxas of $555.000 is 5. Feound is the nearest inthoer: The margina tax rate for eamings before taxes of $249000 is K. Round to the nearest integer: The totat tox liablity for eamings belore taxes of 5249.000is1 (Round o the rearsst dater) The marghal tak inle for bavings before tanes of 3455,700 ia K. Found so the nearest integer! The botal tax labblity for eamings belore tanes of \$65, 100 is 5 (Round so the rearsit dolar) The marghal tax rate for eamugs before tases of 51 milion is 4. (Round to the nearest intager) The total tar liablity for eamings before tanas of 51 millon is 1 ( Alound to the nearest dollar) The correct shase of the curve is: (Select the best anoet below) i c 0 The refaiconip beteen these variables is nat mavginal tax rates as perar incomes increase arti the maximum rale of 37% is atsaited. The marginal tax rake actualy no step-ike tanhion as each tak brackat is reached, so the caine is nat smoch. More info (Click the icon here D in order to copy the contents of the data table below into a spreadsheet.)