Click here to access the 2017 tax rate schedule. If required, round the tax liability the...

Click here to access the 2017 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to three decimal places before converting to a percentage (i.e. .67073 would be rounded to .671 and entered as 67.1%).

a. Chandler, who files as a single taxpayer, has taxable income of $96,200.

Tax liability:	$
Marginal rate:		%
Average rate:		%

b. Lazare, who files as a head of household, has taxable income of $89,400.

Tax liability:	$
Marginal rate:		%
Average rate:		%

Solutions

Expert Solution

a. Using the rate for single taxpayer, her tax liability is
$19,918. Her marginal rate is 28% and average rate is
               (19,918/96,200) = 20.70%

Calculation:-
Refer to 2017 tax rate table
Her taxable income fall between $91,900 to $191,650(which is taxable at $18,713.75 plus 28% of the excess over $91,900)
$96,200 - $91,900 = $4300
= 4300 × 28%
=1204
Tax liability= $18,713.75 + $1204
                    = $19,917.75, rounded to 19,918

b. Using the rates for filing as head od household, his tax liability is $16,603. His marginal rate is 25% and average rate is $18,57% (16,603/89,400)

Calculation:-
Refer to 2017 tax rate table
His taxable income fall between $50,800 to $131,200(which is taxable at $ 6,952.5 plus 25 % of the excess over $50,800)
= $89,400 - $50,800 = $38,600
= 38,600 × 25%
=9,650
Tax liability= $6,952.5 + $9,650
                    = $16,602.5 , rounded to 16,603

ekkarill92 answered 1 year ago

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