Given the tax rates as shown,what is the average tax rate for a firm with taxable income of $311,360?

Question

Quizplus · Accepted Answer

The taxable income falls under the third tax bracket which has a rate of 34 percent on the income between $214,368 and $311,852. To calculate the average tax rate, we need to find the total tax paid and divide it by the taxable income. The tax paid can be calculated as follows: 
$49,400 + ($311,360 - $214,368) x 0.34 = $81,484.88 
Average tax rate = $81,484.88 / $311,360 = 0.262 or 26.2% 
Therefore, the closest option is C, which is 33.62 percent.

Given the Tax Rates as Shown,what Is the Average Tax