Question

FIN 313 Marginal Tax Example - Excel PEDAS - 0 x File Page Layout Formulas Data Review View Help ACROBAT Tell me what you want to do 2 Share suas Home Insert * Calibri B IU -11 A A === » ab Wrap Text General 1 X 0 AutoSum 47 0 Paste - A E S E E Merge & Center - $ % , e Insert Delete Format Conditional Format as Cell Formatting* Table Styles Styles Clear Sort & Filter Editing Find & Select Clipboard Font Alignment Number Cells A B C H I J K L M N O P Q | Income $310,000 $0 $50,000 $50,001 $75,000 $75,001 $100,000 $100,001 $175,000 $175,000 $250,000 $250,000 $400,000 $400,000 above Tax Rate 15.0% 25.0% 34.0% 37.0% 34.0% 35.0% 32.0% 35 Sheet1 Sheet2 Sheet3 + Ready @ -- + Search the web and Windows о е в + 100% 2:00 PM 1/27/2020 9 x]

Answer 1

Income	3,10,000		Tax Rate		Taxes
	0	50000	15%		7500
	50001	75000	25%		6249.75
	75001	100000	34%		8499.66
	100001	175000	37%		27749.63
	175000	250000	34%		25500
	250000	400000	35%		21000
	400000	above	32%		0
				Total	96499.04

Total Income is in the range of 250000-400000 bracket. So, till that point, for all the amounts, we just need to subtract the upper limit - lower limit in that range and multiply with corresponding tax rate.

E.g: (50000-0)*15% = 7500

Similarly for all the ranges. but for 250000-400000 bracket, the remaining amount is 310000- 250000 = 60000 only.

So, 60000*35% = 21000

Total taxes = 96499.04