An investor who has $75,000 in taxable income purchases a building that produces another $15,000 in taxable income.According to the table below,what is the marginal tax rate? Taxable Income Marginal Tax Rat$0 - $34,000 15% $34,001 - $82,150 28%
Over $82,150 31%

Question

Quizplus · Accepted Answer

The investor's total taxable income would be $75,000 + $15,000 = $90,000. The $75,000 falls into the second tax bracket of 28%, while the additional $15,000 falls into the same bracket. The marginal tax rate is the rate applied to the last dollar earned, which is 28% in this case. Therefore, the answer is B) 29.57%.

An Investor Who Has $75,000 in Taxable Income Purchases a Building