Pad 10:48 AM @ * 24% 1-0, During the year just ended, Jean Sanchez's taxable income of $55,000 was twice as large as her younger sister Rachel's taxable income of $27,500. Use the tax rate schedule in Table 17.3 to answer the following questions with regard to the Sanchez sisters, who are both single a. Calculate each sister's tax liability b. Determine (1) the marginal tax rate and (2) the average tax rate for each sister c. Do your findings in part (b) demonstrate the progressive nature of income taxes? Explain Tax Rates and Income Brackets for Individual and Joint Returns (2012) Taxable Income Individual Returns $0 to $8,700 $8,701 to $35,350 $35,351 to $85,650 $85,651 to $178,650 $178,651 to $388,350 Over $388,350 TABLE 17.3 Tax Rates 10% 15% 25% 28% 33% 35% a. Jean's tax liability is 1) (Round to the nearest cent.) Rachel's tax liability is 2) (Round to the nearest cent.) b. Jean's marginal tax rate is Round to the nearest whole percent.) Rachel's marginal tax rate is 2) Round to the nearest whole percent.) Jean's average tax rate is 3) (Round to two decimal places.) Rachel's average tax rate is 4) (Round to two decimal places.) C. Do your findings in part (b) demonstrate the progressive nature of income taxes? Explain. (Select the best choice below.) A. Yes, it is clear that income taxes are progressive in nature, since Rachel's marginal tax rate and average tax rate exceed those of Jean. Yes, the progressive nature of income taxes is evident, since the marginal tax rate which would be paid on additional income exceeds the average tax rate C. No, it does not appear that income taxes are progressive in nature, since Jean and Rachel pay the same marginal and average tax rates No, it does not appear that income taxes are progressive in nature, since Jean's marginal tax rate and average tax rate do not exceed those of Rache