Question 1

Problem 1-52 (LO 1-5) (Algo)

Given the following tax structure:

Taxpayer	Salary	Total tax
Mae	$ 22,000	$ 1,760
Pedro	$ 27,000	???

Required:

a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid?

Note: Round final answer to nearest whole dollar amount.

Required A

What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid?

Note: Round final answer to nearest whole dollar amount.

Minimum tax

Required B

This would result in what type of tax rate structure?

Tax rate structure