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please answer all questions Unit 2 Culminating Practice 50 points possible 3/9 answered Here's a very simple marginal tax scheme: Consider Sophia, whose gross income
please answer all questions
Unit 2 Culminating Practice 50 points possible 3/9 answered Here's a very simple marginal tax scheme: Consider Sophia, whose gross income is $19,000. (a) Suppose the tax scheme allows for a $1000 standard deduction. This means that Sophia's taxable income is $18,000. How much of Sophia's taxable income will be taxed at 8% ? (b) How much of her taxable income will be taxed at 12% ? (c) Find Sophia's total tax owed. (d) Now let's suppose instead that the standard deduction is $5000. This means Sophia's taxable income is $14,000. How much of Sophia's taxable income will be taxed at 8% now? (d) Now let's suppose instead that the standard deduction is $5000. This means Sophia's taxable income is $14,000. How much of Sophia's taxable income will be taxed at 8% now? (e) How much of her taxable income will be taxed at 12% ? (f) Find Sophia's total tax owed. (g) Describe how the standard deduction affects the total tax that Sophia owes. Put another way: what happens to the tax owed when the standard deduction is increased? Why is this? Question Help: Message instructorStep by Step Solution
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