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givi [52]
2 years ago
15

Suppose the government taxes 10 percent of the first $30,000 in income, 20 percent of the next $20,000 in income, and 30 percent

of all income over $50,000. Calculate the marginal tax rate and the average tax rate for a person who earns $70,000.
Business
1 answer:
dangina [55]2 years ago
6 0

The marginal tax rate and the average tax rate for a person who earns $70,000 will be  $1,443 per month.

<h3>Marginal tax rate </h3>

The marginal tax rate is the amount of additional tax paid for every additional dollar earned as income. The average tax rate is the total tax paid divided by total income earned. A 10 percent marginal tax rate means that 10 cents of every next dollar earned would be taken as tax.

<h3>Average tax rate </h3>

A taxpayer's average tax rate (or effective tax rate) is the share of income that they pay in taxes. By contrast, a taxpayer's marginal tax rate is the tax rate imposed on their last dollar of income. Taxpayers' average tax rates are lower — usually much lower — than their marginal rates.

Learn more about marginal tax rate and average tax rate here :

brainly.com/question/10798743

#SPJ4

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The shareholders’ equity of Tru Corporation includes $540,000 of $1 par common stock and $1,140,000 par of 7% cumulative preferr
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$12,600

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Annual Dividend to preferred stock = $1,140,000 × 7%

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A schedule of preferred stock dividend in Arrears is as follows :

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2016        $79,800           $54,000           $25,800

2017        $79,800           $54,000           $51,600

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Dividends of $131,400 has to be paid in 2018 to cover all the arrears.

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