Problem:
Winona is single, with an adjusted gross income of $350,000. Use the given tax table to complete parts (a) through (d). Married Filing Married Filing Head of Tax Rate Single Jointly Separately Household 10% up to $9950 up to $19,900 up to $9950 up to $14,200 12% up to $40,525 up to $81,050 up to $40,525 up to $54,200 22% up to $86,375 up to $172,750 up to $86,375 up to $86,350 24% up to $164,925 up to $329,850 up to $164,925 up to $164,900 32% up to $209,425 up to $418,850 up to $209,425 up to $209,400 35% up to $523,600 up to $628,300 up to $314, 150 up to $523,600 37% above $523,600 above $628,300 above $314, 150 above $523,600 Standard $12,550 Deduction $25, 100 $12,550 $18,800 The effective tax rate based on taxable income is 27.45%. (Round to one decimal place as needed.) d. Calculate the effective tax rate as a percentage of adjusted gross income, and comment on why it differs from what you found in part (c). The effective tax rate based on adjusted gross income is (Round to one decimal place as needed.) The tax rate based on the adjusted gross income is than the tax rate based on the taxable income because the adjusted gross income is than the taxable income.