Assume a single taxpayer is taxed at 10% on the first $9,275 of taxable income,15% on the next $28,375 of income,and at 25% for the following $53,500 of income.What is the average tax rate for that individual if her taxable income is $42,000?
A) 14.93%
B) 16.67%
C) 16.13%
D) 25%

Question

Quizplus · Accepted Answer

Tax = (0.1 × 9,275) + (0.15 × 28,375) + (0.25 × (42,000 − 9,275 − 28,375)) = $6,271.25. Average tax rate= $6,271.25/$42,000 = 0.1493, or 14.93%.

Assume a Single Taxpayer Is Taxed at 10% on the First