Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule). Required: If Campbell earns an additional $15,000 of taxable income, what is her marginal tax rate on this income

Answers

Answer 1

Answer: 35%

Explanation:

First and foremost, we've to calculate the amount that will be taxed on $400000 which will be:

= $46628.50 + ($400000-$204100) × 35%

= $46628.50 + ($400000-$204100) × 0.35

= $46628.50 + $68565

= $115193.5

When earns an additional $15,000 of taxable income, this means her total taxable income will be:

= $400,000 + $15,000

= $415000

Therefore, the tax amount on $415000 will be:

= $46628.5 + ($415000 - $204100) × 35%

= $46628.5 + ($415000 - $204100) × 0.35

= $120443.5

Marginal Tax rate will then be calculated as:

= change in Tax / change in Taxable income

= ($120443.5 - $115193.5) / ($415000 - $400000)

= $5250 / $15000

= 35%


Related Questions

g Which of the following are potential complications when performing financial statement analysis: Group of answer choices Differences fiscal reporting periods Too few close comparable companies (same market cap, same industry, etc.) Ratios calculated for single company at a single point in time offer the analyst little insight Reporting discrepancies in global accounting standards (i.e. GAAP vs IFRS) All of the above

Answers

Answer:

The potential complications when performing financial statement analysis:

All of the above.

Explanation:

Financial statement analysis is a process that breaks down a company's financial statements in order to ease decision making.  The analyst can use any of these three or a combination of horizontal analysis, vertical analysis, and ratio analysis. Mostly, the analysis is useful to external stakeholders and investors who use it to understand the overall health of an organization.  The analysis also evaluates the financial performance and business value of an entity.

If the Edwards production plan for the next period includes 1000 units of component 1 and 800 units of component 2, what purchases do you recommend

Answers

Answer and Explanation:

The computation is shown below:

Particulars          Supplier  

                          1         2          3          Overall

Component 1             1000                  1000

Component 2   650   50       100         800

From the above table the component 1 should be ordered to supplier 2 as the price is lesser in this case and also it is able to supply total production needed as per the component 1

In addition to this, the component 2 should be ordered to supplier 1 for 650 units as the price is lesser and the remaining balance could be ordered from supplier 2 or  3 as the prices are similar

Demand determines price entirely when A) demand is downward sloping. B) demand is perfectly inelastic.

Answers

Answer:

C) supply is perfectly inelastic.

Explanation:

In the case when the supply is perfectly non-elastic so the demand would measures the price entirely that means it calculated the overall price at the time when there is a perfectly non-elastic supply

So according to the given scenario the option c is correct

And, the rest of the options are incorrect

So the same is relevant

The GDP price index is multiple choice 3 computed for each industry sector. a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year. a measure of the price of a specified collection of goods and services compared to the average of the prices of a highly similar collection of goods and services for the last 10 years. a measure of nominal GDP adjusted for inflation. d. Which of the following statements is true

Answers

Answer:

a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year.

Explanation:

The changes should be measured that made in the goods and services involved in GDP. The GDP price index would be treated as an indicator for inflation that has been determined by comparing the current GDP to the GDP made in the reference year

So it would be measured the particular collection of the goods & services that should be compared with that of the reference year

hence, first option is correct

When trade barriers began to fall, what was the motivation for much of the foreign direct investment by non-U.S. firms

Answers

Answer:

The motivations were all the advantages that the U.S. market offers.

These advantages are many, because the U.S. is a developed country, with a very large population, and a robust legal system that protects private property, including the property of non U.S. firms that invest in the country.

For these reasons, once trade barriers began to fall, many non U.S. firms took advantage of the new opportunities, and started to invest in the U.S. market.

I know that Stephen has a lot of money. His parents drive Mercedes. His dogs wear cashmere sweaters, and he paid cash for his Hummer. The conclusion of the argument is ____________

Answers

Answer: I know that Stephen has a lot of money.

Explanation:

The whole point of the reasoning behind this thought by the speaker was to prove that Stephen had a lot of money.

This is why the speaker explained why they believed that Stephen had a lot of money. They talked about the car his parents drove, the cashmere sweaters his dogs wear and his use of cash to pay for his Hummer all to come to the conclusion that Stephen has a lot of money.

What will be the level of interest rate, i, if investment at 0 interest is $16 million and the coefficient of invest, I, equals 0.4.

Answers

Answer:

The right solution is "16 +0.4r". A further explanation is given below.

Explanation:

The given values are:

Autonomous investment,

I = 16 million

Coefficient of investment,

g = 0.4

As we know,

Economy's investment function will be:

⇒ [tex]I(r) = I + gr[/tex]

On substituting the given values, we get

⇒        [tex]=16+0.4r[/tex]

One of the most strategies in developing a strong sense of personal responsibility is to what

Answers

Answer:

Take responsibility for your thoughts, feelings, words, and actions.

Explanation:

There are various strategies to take in developing a strong sense of personal responsibility, one of the topmost strategies is to "Take responsibility for your thoughts, feelings, words, and actions."

This will surely help in determining how to react to situations, without being pushed by others or blame others for the outcome.

Also, it will not affect your perception and duty to yourself. But rather spur you to do what you believe in and what will benefit you.

Other Questions
Explain how to tell the difference between a high-, moderate-, and low-intensity workout. The sum of three consecutive EVEN integers is is 138. Find the smallest integer. The number 299 is divided into two parts inthe ratio 5:8. The product of the numbers(A) 21140(C) 21160(B) 21294(D) 31294 What is the length of diagonal BD? Which of the following are reading skills?making sentences more interesting with adverbs and adjectivesinterpreting graphschecking reliabilityfollowing directionsspell words correctly V is the midpoint of GH. G has coordinates (5, -3), and V has coordinates (-1, 3). Identify the coordinates of H. Most people in Oklahoma work in _____.A. service industries B. the oil and gas industries C. the manufacturing industry D. agriculture On 1/1/27, Frankfort Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the components was $1,300 each year of the three-year-warranty. Frankfort spent $1,400 servicing the components in 2027. This is considered an assurance-type warranty. Using the Expense Warranty approach, what is the 12/31/27 Warranty Liability what is the periodic table elements How did the Louisiana Purchase increase trade? *It allowed the government to tax ship buildersIt gave access and control of the Mississippi RiverIt opened up a trade route to the Pacific OceanIt encouraged industry to begin in the midwest second page only one person understand Using complete sentences, explain how the Chinese communists were treated under the rule of Chiang Kai-shek.What was the Long March, and what were its results? What were the advantages of the south entering into the Civil War help pls .. Which process produces the energy that powers a solar calculator? What does "Communal" Means? And what's a good sentence you can use it? NEEEEEEED Help! PLZ IM IN A MIDTERMWhy would it be incorrect to describe ecosystems as being isolated from each other? f(x)=1/(6x+8)Only value of x not in the domain? 1pcGeologists give a relative age to a sedimentary layer of rock at onelocation then they can give the same age to matching layers of rock at adifferent location.TrueFalse "Tom, at Bode Corporation we align our individual goals with the company's goals.That is, as managers, we useto drive ourselves and our employeesto accomplish key goals that are linked with the company's success," said Tom's newCEO.remunerationcontingency managementquantitative managementmanagement by objectivetime-and-motion studies true or false the eastern extreme point of Africa is cape vert