What would be the marginal tax rate on the extra income

Assignment Help Financial Management
Reference no: EM13850591

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income.

Required information

If Leonardo earned an additional $30,000 of taxable income this year, what would be the marginal tax rate (rounded) on the extra income for year 2015?

27.75%

17.50%

25.00%

28.00%

None of these

Reference no: EM13850591

Questions Cloud

Indifferent between investing in corporate bond : Assume that Jose is indifferent between investing in a corporate bond that pays 10% interest and a stock with no growth potential that pays an 8% dividend yield. Assume that the tax rate on dividends is 15%. What is Jose's marginal tax rate?
Sensitivity of bond price-respect to ytm-stock valuation : Sensitivity of Bond Price With Respect to YTM, Coupon Rate, and Maturity you have a bond with these features: Coupon rate: 10% annual. Coupon payment frequency: semiannual. Calculate last year’s actual return for this firm using historical prices fro..
Dual court system of the united states : Create a 8- to 10-slide Microsoft PowerPoint presentation, with speakers notes, that addresses the following topics: Major historical developments of the U.S. courts and Dual court system of the United States
State the risk of understatement : State the risk of understatement/overstatement and the audit evidence to be collected to verify the financial report assertions of the items - Inventory
What would be the marginal tax rate on the extra income : Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo earned an additional $30,000 of taxable income this year, what..
General environment of organizations : Q.1. Identify at least four forces in the general environment of organizations and provide an example of each for an industry or business. How do these forces differ from the external stakeholders in the task environment?
How standards of care and nurse practice act be applied : Look at the legal malpractice case study that has been assigned to your group. Describe the case and discuss the standard of care that the parties will be held to in this case. How will the standards of care and the Nurse Practice Act be applied i..
What is the annual depreciation : Assume that a piece of equipment is purchased for $100,000. It costs $5,000 to install the equipment. We expect it to last for 5 years, and believe that we will be able to sell it for $25,000 at the end of that five year period of time. Using straigh..
Financial and the accompanying notes and schedules : financial and the accompanying notes and schedules, compute the following values for each company in 2011

Reviews

Write a Review

 

Financial Management Questions & Answers

  Find an existing budget from a published source

Using the existing budget, create a new budget for the next fiscal year. Set out the details of all the assumptions you needed in order to build this budget.

  Why are capital gains excluded fromdividend discount model

Why are capital gains excluded from the dividend discount model? Does the exclusion of capital gains limit its validity? How do money managers and investors address this issue?

  Market value of the firms equity securities

Many large corporations, such as General Motors, have written off large amounts of their nonperforming (or poorly performing) assets as they have shrunk their operations. What is the impact of these asset write-offs on the future return on assets, fu..

  What level of sales is she predicting for june

Marcia Almeida works as a sales analyst for a toy manufacturer. She predicts that toy sales will decrease by 20% from May to June. If the amount of the sales decrease is $605,400, what level of sales is she predicting for June? Because of Father's Da..

  Reduce production-marketing costs for entry-level cameras

Which one of the following is NOT an attractive way to reduce production and/or marketing costs for entry-level cameras and strive to achieve a competitive advantage over rivals based on lower overall costs per entry-level camera sold?

  Assignment-financial management

Assignment: Financial Management, Each day there is speculation in the news about what could happen to Greece and its economy. Your assignment is to research the Greek crisis and draw your own conclusions on what the outcome will be for survival. ..

  What is the value per share of boehms stock

Boehm Incorporated is expected to pay a $2.20 per share dividend at the end of this year (i.e., D1 = $2.20). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the value per..

  Market imperfection result in an optimal capital structure

The existence of market imperfection result in an optimal capital structure with- All debt, all equity, All equity and debt.

  Average beta of the new stocks added to the portfolio

A mutual fund manager has a 30 million portfolio with a beta of 1.5. The risk free rate is 4% and the market risk premium is 6%. The manager expects to receive an additional 5 million, which she plans to invest in a number of stocks. After investing ..

  Calculate and interpret the following variances

What does the budget data tell you about the nature of Wendover'spatients: Are they capitated or fee-for-service? (Hint: See the note to Exhibit 8.7.)

  What is the rate of return on total invested-retirement plan

A publicly traded consulting engineering firm has a retirement plan wherein the company will match an employee’s stock purchases up to $ 5,000 per year, provided the employee has been with the firm for at least 10 years. If an employee hired 10 years..

  Determine the effective annual rate

Changing compounding frequency Using annual, semi annual, and quarterly compounding periods for each of the following, (1) calculate the future value if $5,000 is deposited initially, and (2) determine the effective annual rate (EAR).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd