Table 12-11
-Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is
A)14.7%.
B)16.3%.
C)20.8%.
D)24.0%.

Question

Table 12-11 
-Refer to Table 12-11. If Peggy has taxable income of $43,000, her average tax rate is
A)14.7%. 
B)16.3%. 
C)20.8%. 
D)24.0%.

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. Assuming the tax brackets are similar to the U.S. federal income tax system, Peggy's total tax would be calculated based on the applicable tax rates for her income range. The average tax rate is then the total tax divided by $43,000, which results in approximately 14.7%.

Table 12-11 -Refer to Table 12-11. If Peggy Has Taxable Income of Taxable