Problem 1-41 (LO 1-3) (Algo) Scot and Vidia, married taxpayers, earn $255,200 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Scot and Vidia earn an additional $89,600 of taxable income, what is their marginal tax rate on this income? b. What is their marginal tax rate if, instead, they report an additional $89,600 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) a. % Marginal tax rate Marginal tax rate b. % 2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 9,875 $ 9.875 $ 40,125 $ 40, 125 $ 35.525 $ 85,525 $163,300 $163,300 $207,350 $207,350 $518,400 $518,400 The tax is: 10% of taxable income 5987.50 plus 12% of the excess over $9,375 $4,617.50 plus 22% of the excess over $40.125 $14,605.50 plus 24% of the excess over $85,525 $33,271.50 plus 32% of the excess over $163,300 S47,367.50 plus 35% of the excess over $207,350 $156,235 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 19,750 10% of taxable income S 19.750 $ 80.250 $1,975 plus 12% of the excess over $19,750 $ 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94.735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over: But not over: S 0 $ 14,100 $ 14,100 $ 53,700 $ 53,700 $ 85,500 $ 85,500 $163,300 $163,300 $207,350 $207,350 $518,400 $518,400 The tax is: 10% of taxable income $1,410 plus 12% of the excess over $14,100 S6,162 plus 22% of the excess over $53,700 $13,158 plus 24% of the excess over $85,500 $31,830 plus 32% of the excess over $163,300 $45,926 plus 35% of the excess over $207,350 $154,793.50 plus 37% of the excess over $513.400 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: 0 $ 9,875 $ 9,875 $ 40,125 $ 40,125 $ 85,525 $ 85,525 $163,300 $163,300 $207,350 $207,350 $311,025 $311,025 The tax is: 10% of taxable income $987.50 plus 12% of the excess over $9,875 $4,617.50 plus 22% of the excess over $40.125 $14.605.50 plus 24% of the excess over $85,525 $33,271.50 plus 32% of the excess over $163,300 S47,367.50 plus 35% of the excess over $207,350 $83,653.75 plus 37% of the excess over $311,025