P1-7 (similar to) Marginal and average tax rates Partner A a single taxpayer, is one of two partners in a small business As such, she receives pass-through income that is taxed at her personal tax rates After all adjustments and deductions have been made including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here perform the following: a. Calculate the tax liability, after tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $10,500; $61,600 5302,000 5498,000 51.1 million: 51.4 million and $1.8 million b. Plot the average tax rates (measured on the y-axls) against the pretax income levels (measured on the x-axis). What generalization can be made concerning the relationship between these variables? a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $10.600; $81,600; $302.000; $498,000; $1,100,000: $1.4 million; and $1.8 million. The tax liability for earnings before taxes of $10,600 is : Round to the nearest dollar.) More Info Tax Rates-Single Taxpayers-2018 Range of taxable income $9.525 9,525 to 38,700 3a 700C 22 500 82.500 to 157.500 157.500 to 200.000 200.000 to 500.000 Over 500,000 Base tax SO 953 4.454 14,090 32,090 45,690 150,690 + (10% + (12% + (22% + (24% + (32% + (35% + (37% Tax calculation (Marginal rate x amount over base bracket) x amount over $0) x amount over 9.525) x amount over 38 700) x amount over 82,500) x amount over 157,500) x amount over 200.000) x amount over 500.000) Print Donc P1-7 (similar to) Marginal and average tax rates Partner A a single taxpayer, is one of two partners in a small business As such, she receives pass-through income that is taxed at her personal tax rates After all adjustments and deductions have been made including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here perform the following: a. Calculate the tax liability, after tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $10,500; $61,600 5302,000 5498,000 51.1 million: 51.4 million and $1.8 million b. Plot the average tax rates (measured on the y-axls) against the pretax income levels (measured on the x-axis). What generalization can be made concerning the relationship between these variables? a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of partnership earnings before taxes: $10.600; $81,600; $302.000; $498,000; $1,100,000: $1.4 million; and $1.8 million. The tax liability for earnings before taxes of $10,600 is : Round to the nearest dollar.) More Info Tax Rates-Single Taxpayers-2018 Range of taxable income $9.525 9,525 to 38,700 3a 700C 22 500 82.500 to 157.500 157.500 to 200.000 200.000 to 500.000 Over 500,000 Base tax SO 953 4.454 14,090 32,090 45,690 150,690 + (10% + (12% + (22% + (24% + (32% + (35% + (37% Tax calculation (Marginal rate x amount over base bracket) x amount over $0) x amount over 9.525) x amount over 38 700) x amount over 82,500) x amount over 157,500) x amount over 200.000) x amount over 500.000) Print Donc