-Refer to Table 17-6. Sasha is a single taxpayer with an income of $60,000. What is his marginal tax rate and what is his average tax rate?
A) marginal tax rate = 38%; average tax rate = 23%
B) marginal tax rate = 17%; average tax rate = 21%
C) marginal tax rate = 38%; average tax rate = 24%
D) marginal tax rate = 23%; average tax rate = 38%

Question

-Refer to Table 17-6. Sasha is a single taxpayer with an income of $60,000. What is his marginal tax rate and what is his average tax rate?
A) marginal tax rate = 38%; average tax rate = 23% 
B) marginal tax rate = 17%; average tax rate = 21% 
C) marginal tax rate = 38%; average tax rate = 24% 
D) marginal tax rate = 23%; average tax rate = 38%

Quizplus · Accepted Answer

Sasha's income of $60,000 falls into the 38% marginal tax bracket. His average tax rate is calculated by dividing his total tax liability by his income. His total tax liability is $14,400, so his average tax rate is 24%.