Use the information below to answer the following questions about the Savoy Corporation.
The Savoy Corporation Income Statement Accounts for the year ending December 31,2014
-Refer to the Savoy Corporation Income Statement Accounts.What is the average tax rate for the Savoy Corporation for 2014?
A)29.6%
B)33.3%
C)35.0%
D)30.0%

Question

Use the information below to answer the following questions about the Savoy Corporation.
The Savoy Corporation Income Statement Accounts for the year ending December 31,2014 
-Refer to the Savoy Corporation Income Statement Accounts.What is the average tax rate for the Savoy Corporation for 2014?
A)29.6% 
B)33.3% 
C)35.0% 
D)30.0%

Quizplus · Accepted Answer

To calculate the average tax rate, divide the total taxes paid (which is given as $3,700) by the taxable income (which is given as $12,500) to get 0.296 or 29.6%.

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