Question

Problem 1-47 (LO 1-2, 1-4) Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the appropriate Tax Tables and Tax Rate Schedules a. Married taxpayers, who file a joint return, have taxable income of $25,493 b. Married taxpayers, who file a joint return, have taxable income of $47,046. Use the tax tables to compute tax liability. For all requirements, round "Average tax rate" to 2 decimal places.) Tax liability Marginal tax rate Average tax rate

Answer 1

tax liability marginal tax rate average tax rate

a ) 733.16 12% 2.88%

b) 3359.52    12% 7.14%

for calculating average tax rate income we should divide tax liability by total income.

1st case 733.16 /25,493

2nd case 3359.52 / 47046