In: Finance
Given the tax rates shown in the table, what is the average tax rate for a firm with taxable income of $226,000? Taxable Income Tax Rate $0 - 50,000 15% $50,000 - $75,000 25% $75,000 - $100,000 34% $100,000 - $335,000 39% Group of answer choices
31.59 percent
36.79 percent
33.81 percent
39.00%
taxable income | $2,26,000 | |
tax payable | ||
0-50000(15%)(50000*15%) | $ 7,500.00 | |
50000-75000(25%)(25000*25%) | $ 6,250.00 | |
75000-10000(34%)(25000*34%) | $ 8,500.00 | |
10000-226000(39%)(126000*39%) | $ 49,140.00 | |
total tax | $ 71,390.00 | |
average tax = total tax/taxable income | 31.59% | |
Answer 31.59 Percent |