Answer:
a. 24%
b. 12%
Explanation:
Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).
Chuck Marginal Tax Rate
a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:
= $75,000 + $40,000
= $115,000
Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.
b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:
= $75,000 - $40,000
= $35,000
The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.
Note: the interest is categorized as interest from municipal bond, so it is tax free.
It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.
The entrepreneurial qualities that helps any businessman to be successful in his or her business are as follows:
1) The quality of goods and services should be maintained.
2) The information regarding the product needs to be disseminated to the public.
3) Finance and funding should be taken care of to avoid illegal profits and bankruptcy.
4) True and fair means of practices should be followed.
5) The entrepreneur should be accountable and responsible for the services provided by him.
Answer:
The percentage rate of return for these 298 dairies is 6%
Explanation:
The percentage rate of return is calculated by dividing the profits by total investment, so the given information in the question is,
profits = $18
investment = $300
percentage rate of return = 18/300 = 0.06 = 6%
<u>Solution and Explanation:</u>
<u>Computation of service years
</u>
Year Jim Paul Nancy Dave Kathy Total * Cost Amortization
2014 1 1 1 1 1 5 * 3000 15000
2015 1 1 1 1 1 5 * 3000 15000
2016 1 1 1 1 1 5 * 3000 15000
2017 1 1 1 1 4 * 3000 12000
2018 1 1 1 3 * 3000 9000
2019 1 1 2 * 3000 6000
72000
<u>Future years of service </u>
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
24
