Scot and Vidia, married taxpayers, earn $240,700 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: If Scot and Vidia earn an additional $80,700 of taxable income, what is their marginal tax rate on this income?

What is their marginal tax rate if, instead, they report an additional $80,700 in deductions?

Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over:	But not over:	The tax is:
$ 0	$ 22,000	10% of taxable income
$ 22,000	$ 89,450	$2,200 plus 12% of the excess over $22,000
$ 89,450	$ 190,750	$10,294 plus 22% of the excess over $89,450
$ 190,750	$ 364,200	$32,580 plus 24% of the excess over $190,750
$ 364,200	$ 462,500	$74,208 plus 32% of the excess over $364,200
$ 462,500	$ 693,750	$105,664 plus 35% of the excess over $462,500
$ 693,750		$186,601.5 plus 37% of the excess over $693,750