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Problem 02-09 (Algo) [LO 2-6, 2-7] Jurisdiction X levies a flat 12 percent tax on individual income in excess of $35,000 per year. Individuals who

Problem 02-09 (Algo) [LO 2-6, 2-7] Jurisdiction X levies a flat 12 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no income tax. Required: Mr. Hill earned $81,400 income this year. Compute Mr. Hill's income tax and determine average and marginal tax rate. Ms. Lui earned $38,600 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate. Ms. Archer earned $28,600 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate. What type of rate structure does Jurisdiction X use for its individual income tax?

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