Alan is a single taxpayer with a gross income of $88,000,a taxable income of $66,000,and an income tax liability of $12,271 for 2016.Josh also has $8,000 of tax-exempt interest income.What are Alan's marginal,average,and effective tax rates?
A) 25% marginal; 16.6% average; 18.6% effective.
B) 28% marginal; 15.9% average; 21.5% effective.
C) 28% marginal; 16.6% average; 21.5% effective.
D) 25% marginal; 18.6% average; 16.6% effective.
Correct Answer:
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