Part 1

Scot and Vidia, married taxpayers, earn $62,500 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

"MUST USE 2015 TAX RATE SCHEDULE"

A) If Scot and Vidia earn an additional $19,500 of taxable income, what is their marginal tax rate on this income?

B) How would your answer differ if they, instead, had $19,500 of additional deductions? The marginal tax rate is_____%

PART 2

Jorge and Anita, married taxpayers, earn $42,500 in taxable income and $35,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

"MUST USE 2015 TAX RATE SCHEDULE"

A) WHAT IS THE EFFECTIVE TAX RATE?