Final answer:
The tax owed is $7,250. The average tax rate is 11.15%. The marginal tax rate is 15%.
Step-by-step explanation:
The tax owed can be calculated by first determining the taxable income, which is the total income minus the nontaxable investment income. In this case, the taxable income is $75,000 - $10,000 = $65,000.
To calculate the tax owed, we need to know the tax brackets and rates. Let's assume that the tax rates are as follows:
- 10% for income up to $50,000
- 15% for income from $50,001 to $75,000
- 25% for income above $75,000
In this case, the tax owed can be calculated as follows:
- 10% of $50,000 = $5,000
- 15% of $15,000 ($65,000 - $50,000) = $2,250
Therefore, the total tax owed is $5,000 + $2,250 = $7,250.
The average tax rate is calculated by dividing the total tax owed by the taxable income. In this case, the average tax rate is $7,250 / $65,000 = 0.1115 or 11.15%.
The marginal tax rate is the tax rate applied to the last dollar earned. In this case, since the taxable income is $65,000, the marginal tax rate is 15%.