Assume a company pays tax at a rate of 15% on its first $50,000 of income.Any income above $50,000 is taxed at 25%.If a company has $75,000 of taxable income,which of the following statements is correct?
A) Its marginal tax rate is 15%.
B) Its average tax rate is 25%.
C) Its marginal tax rate is 18.33%.
D) Its average tax rate is 18.33%.
Correct Answer:
Verified
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