Problem 1-35 (LO 1-3) Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule;) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? (For all requirements, do not round intermediate calkulations. Round your answers to 2 decimal places.) a. Marginal tax rate Marginal tax rate b. 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628 50 plus 35% of the excess over $204,100 $510,300 $153,798.50 plus 37% of the excess over $510,300 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ $ 19,400 10% of taxable income $ 19,400 $ 78,950 $1.940 plus 12% of the excess over $19,400 $ 78,950 $168.400 $9,086 plus 22% of the excess over $78,950 $168.400 $321,450 $28,765 plus 24% of the excess over S168,400 $321.450 $408,200 $65,497 plus 32% of the excess over S321,450 $408,200 $612,350 $93,257 plus 35% of the excess over $408.200 $612,350 $164,709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household $ If taxable income is over: But not over: 0 $ 13,850 $ 13,850 $ 52.850 $ 52,850 $ 84.200 $ 84,200 $160,700 The tax is: 10% of taxable income $1,385 plus 12% of the excess over $13.850 $6,065 plus 22% of the excess over S52,850 $12,962 plus 24% of the excess over $84.200