Table 12-7

-Refer to Table 12-7.What is the average tax rate for a person who makes $120,000?
A) 25%
B) 35%
C) 45%
D) 60%

Question

Table 12-7
 
-Refer to Table 12-7.What is the average tax rate for a person who makes $120,000?
A) 25% 
B) 35% 
C) 45% 
D) 60%

Quizplus · Accepted Answer

Based on Table 12-7, a person who makes $120,000 falls into the tax bracket of $82,501-$157,500. The tax for the first $82,500 is $14,089.50, and for the remaining $37,500, it is $9,262.50. Therefore, the total tax paid would be $23,352. The average tax rate can be calculated as (total tax paid/total income)*100. So, (23,352/120,000)*100 = 19.46% which is closest to the second option, 35%.

Table 12-7 -Refer to Table 12-7.What Is the Average Tax Rate for Average