Mo is a single taxpayer reporting $95,000 of gross income. In addition, Mo receives $5,000 of tax-exempt interest.
Required: Compute the following:
a. Mo's taxable income is ___________________.
b. Mo's tax liability is ____________________.
c. Mo's marginal tax rate is ____________________.
d. Mo's average tax rate is ____________________.
e. Mo's effective tax rate is ____________________.

Question

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The Answer of Mo is a single taxpayer reporting $95,000 of gross income. In addition, Mo receives $5,000 of tax-exempt interest.
Required: Compute the following:
a. Mo's taxable income is ___________________.
b. Mo's tax liability is ____________________.
c. Mo's marginal tax rate is ____________________.
d. Mo's average tax rate is ____________________.
e. Mo's effective tax rate is ____________________.

Mo Is a Single Taxpayer Reporting $95,000 of Gross Income