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Scot and Vidia, married taxpayers, earn $254,600 in taxable income and $5,000 in interest from an Investment in City of Tampa bonds. (Use the U.S.

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Scot and Vidia, married taxpayers, earn $254,600 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: a. If Scot and Vidia earn an additional $86,900 of taxable income, what is their marginal tax rate on this income? b. What is their marginal tax rate If, instead, they report an additional $86,900 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) 10 % Marginal tax rate Marginal tax rate b % 2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: S 0 S 9.875 10% of taxable income $ 9,875 $ 40,125 $987.50 plus 12% of the excess over $9,875 $ 40,125 85,525 $4,617.50 plus 22% of the excess over $40,125 S 85,525 S163,300 $14,605.50 plus 24% of the excess over $85,525 S163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $518,400 $47,367.50 plus 35% of the excess over $207,350 $518,400 S156,235 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: S 0 S 19,750 10% of taxable income S 19.750 S 80.250 $1.975 plus 12% of the excess over $19.750 $ 80,250 $171.050 59.235 plus 22% of the excess over $80.250 $171,050 $326,600 $29.211 plus 24% of the excess over $171.050 5326,600 5414.700 S66,543 plus 32% of the excess over $326,600 $414,700 S622.050 $94.735 plus 35% of the excess over $414,700 S622,050 $167.307.50 plus 37% of the excess over $622.050 Schedule Z Head of Household Ir taxable income is over: But not over: S 0 S 14.100 S 14.100 S 53,700 S 53,700 S 85.500 $ 85,500 S163,300 S163,300 $207,350 $207,350 5518.400 5518.400 The tax is: 10% of taxable income $1.410 plus 12 of the excess over $14,100 $6.162 plus 22% of the excess over $53.700 S13.158 plus 24% of the excess over $83.500 $31.830 plus 32% of the excess over S163.300 $45.926 plus 35% of the excess over $207,350 S154.793.50 plus 37% of the excess over S518.400

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