Question

Marc, a single taxpayer, earns $172,500 in taxable income and $3,850 in interest from an investment in city of Birmingham bon

o $40,658 o $36,517 o $35,096 o $34,270 • None of the choices are correct

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Answer #1

The correct answer is None of the choices are correct.

Federal Tax for March applying 2019 tax schedule will be calculated as below:

Tax Liability = ($160725 x 24%) + ($172500 - $160725) x 32%

Tax Liability = $38574 + $3768 = $42342

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