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Adam, a tax resident of country A$,$ is subject to a global income$-$based taxation system with progressive tax rates outlined below: $$0-100$ income tax bracket $-0\%$ ; $$100-200$ income tax bracket $-10\%$;$$200-300$ income tax bracket $-30\%$;$$300$ and above income tax bracket $-40\%.$ Adam's income includes $$300$ in rental income from a property in State $R,$ which is assessed through self$-$assessment based on the progressive income tax rates mentioned above. Additionally, he earns $$100$ in gross rental income from an apartment in State $S$ during the summer.

To evaluate the impact on Adam's tax liability, we'll reference Adam's situation, examining scenarios under both low and high tax rates in State S$.$ Please complete the attached chart in this assignment indicating the net amount of tax payable in State $R,$ the total tax payable by Adam for the year, and effective tax rates. This analysis assumes that State R employs one of the methods outlined in the questions.

State S imposes taxes on rental income in Scenario $1$: at a $15\%$ rate and in Scenario $2$: at a $35\%$ rate, collected as a withholding tax.

QUESTION $1-$ What is the actual cash payment for tax in Scenario $1,$ considering the adoption of the exemption with the PROGRESSION METHOD by Country R$?$

QUESTION $2-$ What are the total actual cash payments for tax in Scenario $1,$ encompassing both State $S$ and State $R,$ assuming Country $R$ employs the exemption with the PROGRESSION METHOD?

QUESTION $3-$ What is the effective tax rate in Scenario $1$ for both State S and State R$,$ assuming the exemption with the PROGRESSION METHOD is adopted by Country R$?$

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