Given the tax rates shown in the table, what is the average tax rate for a...

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%

Solutions

Expert Solution

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

jeff jeffy answered 2 years ago

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