Briana,who is single,has taxable income for the current year of $78,000,resulting in a total tax of $15,271.Her total economic income is $98,000.Briana's average tax rate and effective tax rate are,respectively,
A)19.58% and 15.58%.
B)25% and 28%.
C)19.58% and 25%.
D)15.58% and 19.58%.

Question

Quizplus · Accepted Answer

The average tax rate is calculated as total tax divided by taxable income ($15,271 / $78,000 = 19.58%). The effective tax rate is calculated as total tax divided by total economic income ($15,271 / $98,000 = 15.58%).

Briana,who Is Single,has Taxable Income for the Current Year of $78,000,resulting