Part A
Jim is a Mechanical Engineer. He earns $117000/year after allowable
deductions. What will he owe the IRS in 2018? $
Part B
Jim is offered a new position that will double his taxable income
for 2018. If he accepts the new position how much more will he owe
the IRS in 2018? $
Jim's boss Ron will have $714000/year taxable income in 2018. What
will he owe the IRS? $
PART A
JIM IS INDIVIDUAL , HENCE TAX RATE FOR INDIVIDUAL with earning $117000/year will be 24%
So JIM will owe amount $117000x24% = $28080
PART B
JIM IS INDIVIDUAL , HENCE TAX RATE FOR INDIVIDUAL with earning $117000X2 = $234000/year will be 35%
So JIM will owe amount #234000x35% = $81900
IF HE ACCEPTS NEW POSITION, HE OWES $81900-28080 = $53820 more than previous position.
PART C
JIM Boss Ron IS INDIVIDUAL , HENCE TAX RATE FOR INDIVIDUAL with earning $714000/year will be 37%
So RON will owe amount $714000x37% = $264180
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