Need help with the following: Exercise 3-20 (Algorithmic) (LO. 6) Compute the 20

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Need help with the following:

Exercise 3-20 (Algorithmic) (LO. 6) Compute the 2018 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2018 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (ie. .67073 would be rounded to .6707 and entered as 67.07%. a. Chandler is single and reports taxable income of $108,400. Tax liability: Marginal rate: Average rate: b. Lamar, a head of household, records taxable income of $67,400 Tax liability: Marginal rate: Average rate: 47,802X 44.081 x % 44.081 x %

Explanation / Answer

Part A of Chandler

1. Chandler tax liability would be 14089.50 + (108400-82500)*24% = $ 20305.50

2. Marginal rate is 24%

3. Average rate is 20305.50/108400 = 18.74%

Part b of lamar

1. Tax liability = 5944 + (67400 - 51800)*22% = 5944+3432 = 9376

2. Marginal rate = 22%

3. Average tax rate = 9376/67400 = 13.90%

Simon total tax will be $ 780

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