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Problem 02-13 (Static) (LO 2-7] Country A levies an individual income tax with the following rate structure: Percentage Rate 10% 15 25 30 Bracket Income
Problem 02-13 (Static) (LO 2-7] Country A levies an individual income tax with the following rate structure: Percentage Rate 10% 15 25 30 Bracket Income from O to $20,000 Income from $20,001 to $75,000 Income from $75,001 to $160,000 Income in excess of $160,000 Ms. Slattery's annual taxable income for years 1 through 5 is $150,000. Ms. Ochoa's taxable income for years 1 through 4 is $20,000. In year 5, Ms. Ochoa wins a lottery, and her taxable income for this one year jumps to $670,000. Assume the tax rate bracket has not changed. Required: a. How much total income does each individual earn over the 5-year period? b. Compute each individual's average tax rate for the 5-year period
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