Problem 1-46 (LO 1-2, 1-4)

Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. (Use the tax tables to compute tax liability. Round "Average tax rate" to 2 decimal places.) Use the Form 1040EZ Tax Tables and Tax Rate Schedules. Single taxpayer, taxable income of $29,464.

Single taxpayer, taxable income of $76,792. Tax liability Margin tax rate Average tax rate

a.__________ __________% __________%

b. __________ __________ % __________%

Tax Table

Taxable income is -

At least But less than Single

29,400 29,450 3,950

29,450 29,500 3,958

Taxable income is -

At least But less than Single

76,750 76,800 14,965

Tax Rate Schedules.

Schedule X-Single

If taxable

Income is over: But not over: The tax is:

$0 $9,275 10% of taxable income

$9,275 $37,650 $927.50 plus 15% of the excess over $9,275

$37,650 $91,150 $5,183.75 plus 25% of the excess over $37,650

$91,150 $190,150 $18,558.75 plus 28% of the excess over $91,150