THESE FACTS ARE USED FOR THE NEXT QUESTION.
Mr. Harley Davidson earned $107,300 adjusted gross income) in 1992. After application of the relevant legal provisions, his taxable income was $86,362. The relevant portion of the tax table reads:
If taxable income is:

-Approximately what average tax rate did Mr. Davidson pay?

Question

THESE FACTS ARE USED FOR THE NEXT QUESTION.
Mr. Harley Davidson earned $107,300 adjusted gross income) in 1992. After application of the relevant legal provisions, his taxable income was $86,362. The relevant portion of the tax table reads:
If taxable income is:

-Approximately what average tax rate did Mr. Davidson pay?

Quizplus · Accepted Answer

To find the average tax rate, we need to divide the total tax paid by the taxable income. Looking at the tax table, we can see that Mr. Davidson falls into the bracket for taxable income between $80,000 and $90,000. The tax due for that bracket is $19,212. So, Mr. Davidson paid $19,212 in taxes on a taxable income of $86,362. To find the average tax rate, we divide $19,212 by $86,362 and get approximately 0.222 or 22.2%. However, we are asked to choose from the given options, and the closest one is B, 26%. It's important to remember that this is an approximate calculation and may not match exactly with any of the options presented.