Which of the following statements is correct for an individual with a net income of $50,000, a tax liability of $10,704.50, and a 28 percent marginal tax rate?

Question

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the tax liability by the net income: 
Average Tax Rate = Tax Liability / Net Income
= $10,704.50 / $50,000
= 0.2141 or 21.41%
Therefore, option A is correct.

Which of the Following Statements Is Correct for an Individual