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Question & Answer: Fede x 齫McGe-Hil Education x y Correct g Started Imported From IE m imported From Frei Dornan Manage. D cheapDo…..

Fede x 齫McGe-Hil Education x y Correct g Started Imported From IE m imported From Frei Dornan Manage. D cheapDomuncom O sadelingov On Campus aOnl D DeVry! 182·Homework 0 Help Save 4 Problem 1-50 (LO 1-3, LO 1-5) Song earns S152.500 taxable income as an interior designer and is taxed at an average rate of 15 percent te-S22875 of tad a. If Congress increases the income tax rate such that Songs average tax rate increases from 15 percent to 20 percent, how much more income tax wil she pay assumin to 2 decimal places g that the income effect is desciptive? (Round your intermediate calculations and final answe b If the income effect is descriptive, the tax base and the tax collected will increase True False

Fede x 齫McGe-Hil Education x y Correct g Started Imported From IE m imported From Frei Dornan Manage. D cheapDomuncom O sadelingov On Campus aOnl D DeVry! 182·Homework 0 Help Save 4 Problem 1-50 (LO 1-3, LO 1-5) Song earns S152.500 taxable income as an interior designer and is taxed at an average rate of 15 percent te-S22875 of tad a. If Congress increases the income tax rate such that Song’s average tax rate increases from 15 percent to 20 percent, how much more income tax wil she pay assumin to 2 decimal places g that the income effect is desciptive? (Round your intermediate calculations and final answe b If the income effect is descriptive, the tax base and the tax collected will increase True False

Expert Answer

 

Taxable income =$152,500 Tax at earlier rate (15% of 152,500)=22,875 Tax at present rate(20% of 152,500)=30,500 Therefore additional income tax=30,500-22,875=$7,625

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