Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$

question 29

Multiple Choice

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductions, and Exemptlons**


- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$ , which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$ .
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-You are married filing jointly and have a taxable income of $287,874. You make monthly contributions of $1095 to a tax-deferred savings plan. Calculate the effect on annual take-home pay
Of the tax-deferred contribution.

• A)Take-home pay will be $4336 less per year with tax-deferred plan
• B)Take-home pay will be $3679 less per year with tax-deferred plan
• C)Take-home pay will be $4336 more per year with tax-deferred plan
• D)Take-home pay will be $3679 more per year with tax-deferred plan

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Definitions:

Planned Change Process

A deliberate effort to improve an organization's effectiveness or to manage the impact of external changes through structured methods and strategies.

Incentives

Benefits, rewards, or compensation offered to motivate individuals towards achieving specific goals or desired behaviors.

Resistors

Electronic components that oppose the flow of electrical current, used to control the level of current in a circuit.

Manipulation and Co-optation

Techniques used in organizational change, manipulation involves covert influence, while co-optation involves bringing individuals into a change effort to secure their support.