Question

newconnect.mheducation.com ng Apple Google Wikipedia Facebook Twitter Linkedin The Weather Channel YepTripAdvisor Google Yahoo Solved: Song earns $100,000 table income as an in Song earns $217,500 taxable income This window shows your responses and what was marked correct and incorrect from your previous attempt. an inter Song earns $217,500 taxable income as an interior designer and is taxed at an average rate of 25 percentie $54,375 of tax) a. If Congress increases the income tax rate such that Song's average tax rate increases from 25 percent to 35 percent, how much more income tax will she pay assuming that the income effect is descriptive? (Round your intermediate calculations and final answer to 2 decimal places.) Additional income $21.750,00 b. If the income effect is descriptive, the tax base and the tax collected will increase True False MacBook Air

Answer 1

1. under this the 2,17,500 is taxable income . and tax percentage is 25% than tax payable is 54,375.
than after tax income is =2,17,500-54,375=1,63,125
after tax income = pretax income [1 - tax rate ]
1,63,125 =pretax income[1-35%]
1,63,125=pretax income[65%]
pretax income=1,63,125/65%
than pretax income =250961.53
song will pay income tax = 250961.53*35% =90671.54

taxable income[change in payable tax]= 90671.54-54,375=36296.54
2. this is true.