Accounting Analysis

[Name of the Institute]

Accounting Analysis

Question # 1

Answer.

Calculation of Tax Liability using Tax Rate formula and Tax Rate table

Status

Income

Tax rate

Taxable Amount

Net Amount

Single person

55000

10%

5500

49500

Married

55000

8%

4400

50600

In the above example, assuming the tax rate for a single person is 10%, the income that is called as gross income is 55000; the net amount will be 49500. If the person who is married then the tax rate is assumed to be 8% therefore, the taxable amount for the married person will be 4400, and hence the net amount is 50600.

If the person is married and the tax rate is filled jointly then the tax rate ...