Question
Ms. Busch has gathered these data about her finances: The personal exemption is $3,700. The standard deduction for a single filer is $5,800. Use the
Ms. Busch has gathered these data about her finances: The personal exemption is $3,700. The standard deduction for a single filer is $5,800. Use the rate schedule in Figure 92 to compute the following: a. Her tax b. Her average effective tax rate c. Her average tax rate d. Her marginal tax rate e. Her accountant discovers a previously omitted personal deduction of $800. By how much does her federal tax liability fall with that addition? f. Amazingly enough, the accountant now discovers a $250 credit omitted from previous calculations (but after discovering the $800 in part e). By how much does her federal tax liability fall because of this credit
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