Question

1010 capacity For Questions 12-15, refer to the following 2018 Marginal Tax Table for a Married Couple Range of Adjusted Gross Income $0-$19,050 Marginal Tax Rate 10% $19,051-$77,400 $1,905 plus 12% of the amount over $19.050 $77,401-$165,000 $8.907 plus 22% of the amount over $77.400 $165,001—$315,000 $28.179 plus 24% of the amount over $ 165,000 $315,001—5400,000 $64,179 plus 32% of the amount over $315.000 $91,379 plus 35% of the amount over $400,000—$600,000 $400.000 $161,379 plus 37% of the amount Over $600,000 over $600,000 12) Frank and Amanda are 34 year old KSU grads and married. Frank makes $70,000 as a Nurse Anesthetist. Amanda is a chemical engineer and makes $91,000 per year. They each have been in these jobs for several years. Based on the above Federal tax table and assuming no deductions, how much in Federal Taxes will they owe A) $38,640.00 B) $28,179.00 C) $27,299.00 D) $35,760.00 13) What is Frank and Amanda's Average Tax Rate: A) 24.00% B) 16.96% C) 17.50% D) 22.21% 14) Now assume that Frank gets promoted to Nursing Supervisor at the surgery center where he works and effective July 1 of this year, his annual salary will be $82,000 per year. That means that for the first 6 months of the year, he worked at the old salary and for the second 6 months of the year, he worked at the new salary. Assuming also that Amanda gets 10% raise on January 1, 2018 and that both Frank and Amanda stayed at these jobs for the whole year, how much tax will they now owe for 2018? A) $42,264.00 B) $28,597.00 C) $32,283.00 D) $30,843.00

Answer 1

(120) Total income of Frank and Amanda = $70000 + $ 91000 = $1,61,000

• So, the tax amount owed by Frank and Amanda = 8907 + 0.22x (161000-77400) - 8907 + 0.22 x 83600 - 8907 + 18392 = 272gg So, option (c) is correct. (13) Average tax rate - Total tax to be paid & 100 Total Income - Q7 299 100 161000 = 16.96% So, option (B) is correct. * 100%