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Indy currently earns $50,000 in taxable income

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Indy currently earns $50,000 in taxable income and pays $8000 in taxes. Suppose that Indy faces a marginal tax rate of 25 percent and his boss offers him a raise of $2000 per year. Indy should;a. reject the raise because his after-tax income will fall by $4500.;b. reject the raise because his after-tax income will fall by $6000.;c. accept the raise because his after-tax income will rise by $1500.;d. reject the raise because his after-tax income will fall by $3000.

 

Paper#25736 | Written in 18-Jul-2015

Price : $22
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