Ben Fasby has taxable income of $7,000,and the following tax rate schedule is applicable:
Taxable Income Tax Rate
$0 to $3,400 0 %
$3,400 to $5,500 12 %
$5,500 to $7,600 14 %
Ben's average tax rate is

Question

Quizplus · Accepted Answer

Ben's tax is calculated as follows: $0 for the first $3,400, then 12% on the next $2,100 ($5,500 - $3,400 = $2,100), which is $252, and 14% on the final $1,500 ($7,000 - $5,500 = $1,500), which is $210. The total tax is $252 + $210 = $462. The average tax rate is the total tax divided by the total taxable income: $462 / $7,000 = 0.066, or 6.6%.

Ben Fasby Has Taxable Income of $7,000,and the Following Tax