Jurisdiction M imposes an individual income tax based on the following schedule. Which of the following statements is true?

Question

Jurisdiction M imposes an individual income tax based on the following schedule.  Which of the following statements is true?

Quizplus · Accepted Answer

We can find the correct answer by matching the given taxable income with the tax rate schedule.

A) For Mrs. Hall's taxable income of $227,000, her marginal tax rate is 10%. However, her average tax rate would be ($5,464 + $18,340 + $24,600 + $27,520 + $26,050) / $227,000 = 23.24%, which is not 12%. Therefore, option A is incorrect.

B) For Mr. Poe's taxable income of $41,200, his average tax rate would be ($412 + $824) / $41,200 = 2%, and his marginal tax rate would be 4%. Therefore, option B is incorrect.

C) For Ms. Kaye's taxable income of $63,800, her marginal tax rate would be 8%, and her average tax rate would be ($1,236 + $2,472 + $4,084) / $63,800 = 10.09%. Therefore, option C is correct.

D) Since option C is true, option D cannot be the correct answer.

Jurisdiction M Imposes an Individual Income Tax Based on the Following