Jurisdiction M imposes an individual income tax based on the following schedule.
Rate Income bracket
5% $-0- to $50,000
+ 8% $50,001 to $200,000
+ 12% $200,001 and above
-Which of the following statements is true?
A) If Mrs Hall's taxable income is $227,000, her average tax rate is 12%.
B) If Mr. Poe's taxable income is $41,200, his marginal tax rate is 8%.
C) If Ms. Kaye's taxable income is $63,800, her marginal tax rate is 8%.
D) None of the choices are correct.
Correct Answer:
Verified
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