Q 92

With respect to the income tax formula, which of the following statements is correct?
A) Taxable income is multiplied by a single tax rate to determine tax liability.
B) It is almost always the case that the tax return will either show a tax refund or an additional tax liability.
C) Total income and taxable income are the same number.
D)Tax credits are not used when making tax liability calculations.

Q 93

Which of the following statements is false with respect to marginal and average tax rates?
A) For most taxpayers, the average rate is larger than the marginal rate.
B) For taxable income greater than the lowest tax bracket, the average rate is always greater than the lowest marginal rate and less than the highest marginal rate.
C) The average rate is the percentage of tax paid on the entire amount of taxable income.
D)The marginal rate is the proportion of tax paid on the next dollar of taxable income.

Q 94

Tameka has taxable income of $84,125 that is taxed as follows: Her marginal tax rate is:
A) 25%.
B) 20%.
C) 15%.
D)10%.