Jennings, Inc. has a tax liability of $170,000 on pretax income of $500,000. What is the average tax rate for Jennings, Inc.?

Name: Jennings, Inc. has a tax liability of $170,000 on pretax income of $500,000. What is the average tax rate for Jennings, Inc.?
Brand: Quizplus
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Quizplus · Accepted Answer

The average tax rate is calculated by dividing the tax liability by the pretax income and then multiplying by 100 to get a percentage. For Jennings, Inc., this is $170,000 / $500,000 * 100 = 34%.