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Wendy Has $32,500 in Income

Question 71

Multiple Choice

Wendy has $32,500 in income. The marginal tax rates are 12% on the first $20,000 and 25% on everything above $20,000. Assuming that Wendy has no tax deductions, how much does she pay in taxes?


A) $3,125
B) $3,900
C) $5,525
D) $8,125

Correct Answer:

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