The tax rates are as shown.Lasseter's currently has taxable income of $163,400.What is the firm's average tax rate?

A)34.00%
B)36.03%
C)28.75%
D)39.00%
E)30.32%

Name: The tax rates are as shown.Lasseter's currently has taxable income of $163,400.What is the firm's average tax rate? A)34.00% B)36.03% C)28.75% D)39.00% E)30.32%
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Question

The tax rates are as shown.Lasseter's currently has taxable income of $163,400.What is the firm's average tax rate?

A)34.00% 
B)36.03% 
C)28.75% 
D)39.00% 
E)30.32%

Quizplus · Accepted Answer

Average tax rate = [0.15($50,000)+ 0.25($25,000)+ 0.34($25,000)+ 0.39($163,400 - $100,000)] / $163,400 = 0.2875,or 28.75%

The Tax Rates Are as Shown