Explore BrainMass
Share

Explore BrainMass

    Solve: Calculating Taxable Income

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose you currently earn taxable income of $100,000 per year. You are subject to an MTR of 50%. Currently, your ATR is 35 percent. Calculate your annual tax. Calculate the extra tax that you would pay per year if your annual income increased to $110,00. What is your ATR when your annual income is $110,000?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:13 am ad1c9bdddf
    https://brainmass.com/economics/income-distribution/calculating-taxable-income-example-question-367925

    Solution Preview

    Solution:

    The annual tax = Income X Average Tax Rate (ATR)
    Annual tax = 100,000 X 35% = $35,000
    The extra tax would be paid based on marginal tax rate ...

    Solution Summary

    Solution provides steps necessary to calculate the taxable income.

    $2.19