Ray Butani, a single taxpayer, earns $425,000 in taxable inc…

Ray Butani, a single taxpayer, earns $425,000 in taxable income and $60,000 interest from an investment in town of Elmdale bonds. Using the U.S. tax rate schedule for 2020 below, determine the following: A. How much federal tax will he owe? (3 points) B. What is his average tax rate? (2 points) C. What is his effective tax rate? (2 points) D. If Ray earns an additional $175,000 in taxable income, what is his marginal tax rate on this income? (3 points)   

David Rose gives his mother Moira $10,000 to spend on clothi…

David Rose gives his mother Moira $10,000 to spend on clothing and wigs. David’s marginal tax rate is 32% and Moira’s marginal tax rate is 12%. David owns a store and needs assistance. How much would employing Moira at the store and paying her $10,000 instead of giving it to her save the family overall in tax (ignore payroll and employment tax)?