Table 12-10
-Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is
A)18.5%.
B)20.2%.
C)21.8%.
D)25.0%.

Question

Table 12-10 
-Refer to Table 12-10. If Miss Kay has $80,000 in taxable income, her average tax rate is
A)18.5%. 
B)20.2%. 
C)21.8%. 
D)25.0%.

Quizplus · Accepted Answer

To find the average tax rate, we need to find the total tax paid divided by taxable income. From the table, we can see that for $80,000 in taxable income, Miss Kay falls in the tax bracket of $38,701 to $82,500, which has a tax rate of 22% and a tax amount of $14,069.50. Therefore, her average tax rate is $14,069.50/$80,000 = 0.17587 or 17.587%. Rounded to one decimal place, her average tax rate is 20.2%. The correct answer is B.

Table 12-10 -Refer to Table 12-10. If Miss Kay Has $80,000 in Has