Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.

-Refer to Table 12-2.Costa is a single person whose taxable income is $50,000 a year.What is his average tax rate in 2003?

Question

Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.
 
-Refer to Table 12-2.Costa is a single person whose taxable income is $50,000 a year.What is his average tax rate in 2003?

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. Based on the tax brackets for 2003, Costa's total tax can be calculated, and then divided by $50,000 to find the average tax rate, which is 19.6%.

Table 12-2 United States Income Tax Rates for a Single Individual, 2002