Asked by Heath Gillette on Jun 13, 2024
Verified
Tameka has taxable income of $84,575 that is taxed as follows: $9,325×10%=$932.50($37,950−$9,325) ×15%=4,293.75($854,225−$37,950) ×25%=11,818.75 Total tax $17,045.00\begin{array}{lr}\$ 9,325 \times 10 \%=&\$932.50\\(\$ 37,950-\$ 9,325) \times 15 \%=&4,293.75\\(\$ 854,225-\$ 37,950) \times 25 \%=&11,818.75\\\text { Total tax }&\$17,045.00\end{array}$9,325×10%=($37,950−$9,325) ×15%=($854,225−$37,950) ×25%= Total tax $932.504,293.7511,818.75$17,045.00
Her average tax rate is:
A) 25%.
B) 20%.
C) 15%.
D) 10%.
Taxable Income
The amount of an individual's or corporation's income used to determine how much tax is owed, after all deductions and exemptions.
Average Tax Rate
The percentage of income that is paid in taxes, calculated by dividing the total tax amount by the total income.
Total Tax
The sum of all taxes owed by an individual or entity to the government in a fiscal year, including federal, state, and local taxes.
- Calculate effective and average tax rates.
Verified Answer
HM
Husna MaiwandiJun 16, 2024
Final Answer :
B
Explanation :
The average tax rate is calculated by dividing the total tax by the taxable income and then multiplying by 100 to get a percentage. For Tameka, this is $17,045$84,575×100=20%\frac{\$17,045}{\$84,575} \times 100 = 20\%$84,575$17,045×100=20% .
Learning Objectives
- Calculate effective and average tax rates.