The calculation for the federal income tax rate is as follows: The equation for Cell 36 is: Value of your response: 15%. For federal tax purposes, all money earned whether as a wage, salary, or cash gift is considered income.
The Internal Revenue Service (IRS) imposes the federal income tax in the United States on the annual profits of people, businesses, trusts, and other legal organizations. All sources of income that contribute to a taxpayer's taxable income, including as wages, salaries, commissions, bonuses, gratuities, investment income, and some categories of unearned income, are subject to federal income taxes. Individual federal income tax rates in the US are progressive, which means that they rise in proportion to taxable income. Federal income tax rates range from 10% to 37%, and they become effective at a certain level of income. Tax brackets are the ranges of income to which the rates are applied. Each tax bracket has a different rate of taxation that applies to certain types of income.
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