Chapter I:2 - Cheapest Test banks Papers and Solution Manuals

Because her last dollar of taxable income is in the 12% tax bracket with and without the $14,000, the $1,680 increased tax can also be calculated by multiplying $14,000 by 12%. If Ralph and Tina had not transferred the bonds to Pam, the tax on the $14,000 of interest would have been $4,900 (see part a). ................
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