In 2017, Boyer Enterprises had $76,700 in taxable income. What was the firm's average tax rate for the year? $\begin{array}{c}
\begin{array}{c}
\text { Taxable Income }\
\begin{array}{lll}
\$0&\text { - } &50,000 \
50,001 &\text { - } &75,000 \
75,001&\text { - } &100,000 \
100,001&\text { - } &335,000 \
\end{array}
\end{array}
\begin{array}{c}
\text { Tax Rate}\
15 \% \
25 \
34 \
39
\end{array}
\end{array}$

Question

In 2017, Boyer Enterprises had $76,700 in taxable income. What was the firm's average tax rate for the year? $\begin{array}{c}
\begin{array}{c}
\text { Taxable Income }\
\begin{array}{lll}
\$0&\text { - } &50,000 \
50,001 &\text { - } &75,000 \
75,001&\text { - } &100,000 \
100,001&\text { - } &335,000 \
\end{array}
\end{array}
\begin{array}{c}
\text { Tax Rate}\
15 \% \
25 \
34 \
39
\end{array}
\end{array}$

Quizplus · Accepted Answer

To calculate the average tax rate, we need to find the total tax paid and divide it by the taxable income. For $76,700:  - The first $50,000 is taxed at 15%: $50,000 * 0.15 = $7,500  - The next $26,700 ($76,700 - $50,000) is taxed at 25%: $26,700 * 0.25 = $6,675  Total tax = $7,500 + $6,675 = $14,175  Average tax rate = $14,175 / $76,700 ≈ 18.48% (rounded to 18.68% in the choices)

In 2017, Boyer Enterprises Had $76,700 in Taxable Income A) 2825 Percent B) 18

In 2017, Boyer Enterprises Had $76,700 in Taxable Income A) 2825 Percent
B) 18