Anne,who is single,has taxable income for the current year of $38,000 while total economic income is $43,000 resulting in a total tax of $5,356.Anne's average tax rate and effective tax rate are,respectively,
A)14.09% and 12.46%.
B)12.46% and 14.09%.
C)14.09% and 25%.
D)12.46% and 25%.

Question

Quizplus · Accepted Answer

The average tax rate is calculated as total tax divided by taxable income ($5,356 / $38,000 = 14.09%). The effective tax rate is calculated as total tax divided by total economic income ($5,356 / $43,000 = 12.46%).

Anne,who Is Single,has Taxable Income for the Current Year of $38,000