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In: AccountingMr. Hoosier has gathered all these data about his finances.Salary $Mr. Hoosier has gathered all these data about his finances.Salary $159,000Taxableinterest $5600Municipal Bondinterest $20,000Total Itemizeddeductions $9500The personal exemption is $4700. The standardized deduction fora single filer is 5000.If Taxable Incomeis Then tax is:0-8000 10% of the amount over 08000-35,000 800 + 15% of the amount over 800035000-55,000 4850 + 20% of the amount over 3500055000-150,000 8850 + 30% of the amount over 55000150000 –200000 37350 + 35% of the amount over 150000200000 andover 54850 + 40% of the amount over 200000 1. What is his tax?2. His average effective tax rate3. His average tax rate4. His marginal tax rate5. Assume he discovers that he is eligible for a 500 taxdeduction. How much does his tax liability fall with thataddition?6. Now he discovers that he is eligible for a $500 tax credit.How much does his tax liability fall due to this credit?