Help please xable Income Brackets Base Tax (Marginal Rate X Amount Over Bracket An...
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xable Income Brackets Base Tax (Marginal Rate X Amount Over Bracket An 0 to $9,525 (10% x amount over S 0) 525 to 38,700 $ 953 (12% x amount over $ 9,525) + 8,700 to 82,500 S 4,454 (22% x amount over $ 38,700) (24% x amount over $ 82,500) (32% x amount over $157,500) (35%x amount over$200,000) + 82,500 to 157,500 $14,090 + 157,500 to 200,000 S 32,090 : + 200,000 to 500,000 $45,690 + Over 500,000 50,690 (3790 x amount over S500,000) a. Assume that Dan Smith owns a lawn care service and operates this business as a sole proprietorship During the current year, Dan's business realized a "Pre-Tax Income" of $250,000. Using the tax schedule for sole proprietorship businesses shown above, calculate the tax liability for Dan's business during the current year. 1. 2. What is the average income tax rate applicable to Dan's business? 3. What was the marginal income tax rate applicable to Dan's business?
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