question 4

Jorge and Anita, married taxpayers, earn $159,500 in taxable income and $49,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filling jointly). Required: a. If Jorge and Anita earn an additional $109,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $109,500 in deductions? Note: For all requirements, do not round intermedlate calculations. Round your answers to 2 decimal places