Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Esposito, a petroleum engineer, earns an $62,500 annual salary, while Mrs. Esposito, a homemaker, has no earned income. Under current law, the couple pays

image text in transcribed
image text in transcribed
Mr. Esposito, a petroleum engineer, earns an $62,500 annual salary, while Mrs. Esposito, a homemaker, has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple's future tax rate will increase to 28 percent. If Mrs. Esposito decides to take a part-time job because of the rate increase, how much income must she earn to maintain the couple's after-tax disposable income? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Country A levies an individual income tax with the following rate structure: Percentage Rate 108 15 25 30 Bracket Income from -- to $20,000 Income from $20,001 to $75,000 Income from $75,001 to $160,000 Income in excess of $160,000 Required: a. Mr. Levi's taxable income is $41,200. Compute his tax and average tax rate. What is Mr. Levi's marginal tax rate? b. Ms.Jinn's taxable income is $238,800. Compute her tax and average tax rate. What is Ms.Jinn's marginal tax rate? Complete this question by entering your answers in the tabs below. es Required A Required B Mr. Levi's taxable income is $41,200. Compute his tax and average tax rate. What is Mr. Levi's marginal tax rate? (Round your percentage answers to 2 decimal places and other answer to the nearest dollar amount.) Mr. Levi Income tax Average tax rate % Marginal tax rate % Required A Required B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internal Audit Handbook The Business Approach To Driving Audit Value

Authors: Hans Beumer

1st Edition

3906861201, 978-3906861203

More Books

Students also viewed these Accounting questions

Question

How to reverse a Armstrong number by using double linked list ?

Answered: 1 week ago

Question

Discuss the importance of workforce planning.

Answered: 1 week ago

Question

Differentiate between a mission statement and a vision statement.

Answered: 1 week ago