What is Kerry\'s average tax rate if the extra photoshoot it accepted? oorsWindo

Question

What is Kerry's average tax rate if the extra photoshoot it accepted?
oorsWindow Help Sani x biscms/mod/ibis/view.php?id-4519267 e (a Search Jump to... Question 1 of 19 Sapling Learning Map Jerry earns a base salary of $50,000 as a photographer and is subject to the following (fictitious) income tax bracket. Jerry is considering taking on an additional photoshoof that will increase his income In order for Jerry to deem the photoshoot worth his time, this photoshoot must earn Jerry $3000 a taxes. Please round all answers, if not whole numbers, to two decimal places Tax Rate Income $0 $10,000 $10,001-$30.000 S30.001-S50.000 $50,001+ 5% I 10% | 20% 50% What is the marginal tax rate associated with taking on this Given the information above, will Jerry undertake this extra photoshoot? O Yes o No O Need more information Number 50 What is Jerry's average tax rate if the extra How much does Jerry end up paying in taxes? Number Number Not available until Dec 7 Due Dec 9 at 11:59pm 1-50 pts

Explanation / Answer

a) Marginal tax rate for Jerry will be 50%. Because after taking the new photoshoot his new income is $55,000 which falls in maximum tax slab.

b) No, Jerry will not be able to take the new photoshoot because he needs $3000 and his extra income of $5000 will be taxed at 50%. Reducing it to $2500.

c) If Jerry accepts the photo shoot the average tax rate will be 16.36% [(9000 / 55,000) x 100]

d) Jerry has to pay $6500 in taxes if he doesn't accept the photo shoot but if he does his taxes will be increased by $2500 and a total will be $9000.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.