Question 1

Problem 1-36 (LO 1-3) (Static)

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.)

Required:

Required A

a. How much federal tax will she owe?

How much federal tax will she owe?

Note: Do not round intermediate calculations. Round "Federal tax" to the nearest dollar.

Federal Tax =

Required B

b. What is her average tax rate?

Note: Do not round intermediate calculations. Round total tax to the nearest dollar.

Choose Numerator	/	Choose Denominator	=
	/		=	Average Tax Rate
	/		=

Required C

c. What is her effective tax rate?

Note: Do not round intermediate calculations. Round total tax to the nearest dollar.

Choose Numerator	/	Choose Denominator	=
	/		=	Effective Tax Rate
	/		=

d. What is her current marginal tax rate?

Marginal Tax Rate =