Oakdale Fashions Inc. had $255,000 in 2013 taxable income. If the firm paid $82,100 in taxes, what is the firm's average tax rate?

Name: Oakdale Fashions Inc. had $255,000 in 2013 taxable income. If the firm paid $82,100 in taxes, what is the firm's average tax rate?
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Question

Quizplus · Accepted Answer

Average tax rate = Total taxes paid / Taxable income

Average tax rate = $82,100 / $255,000 = 0.3220

The average tax rate is 32.20%. Therefore, the correct answer is B.