1. You earn a salary of $105,000 from your current employer and have taxable income of $80,000. You have gotten a job offer from & rival company, offering to pay you $120,000. Using the tax brackets in Table 6.1 and assuming all else stays the same,

1. What will be your federal income tax obligation if you take the new job?
2. What will be your new income, after taxes?
3. What is you increase in after-tax income, with the new job?

Taxable income is greater than (\$) Taxable income is less than (\$) Your tax rate \begin{tabular}{|c|cc} \hline 0 & 9,875 & 10% \\ \hline 9,876 & 40,125 & 12% \\ \hline 40,126 & 85,525 & 22% \\ \hline 85,526 & 163,300 & 24% \\ \hline 163,301 & 207,350 & 32% \\ \hline 207,351 & 518,400 & 35% \\ \hline 518,401 & & 37% \\ \hline \end{tabular}