Based on the following table of the tax rates, what is the average tax rate for...

Based on the following table of the tax rates, what is the average tax rate for a firm with taxable income of $120,000? Taxable Income ($) Tax Rate 0 – 50,000 15% 50,000 – 75,000 25% 75,000 – 100,000 34% 100,000 – 335,000 39%

A. 20% B. 25% C. 34% D. 39%

Expert Solution

Total income = $120,000

As per the tax rate table for the first $50,000 there will be 15% tax applicable.For the next $25,000 tax rate of 25% will be applicable and for the Next $25,000 Tax rate of 34% will be applicable . And for the remaining $20,000 tax rate of 39% will be applicable.

Total tax

= 50,000*15% + 25,000*25% + 25,000*34% + 20,000*39%

= 7,500 + 6,250 + 8,500 + 7,800

= $30,050

Average tax rate = Total tax/ Taxable income

= 30,050/120,000

= 25.04%

Therefore the correct option is B 25%.

jeff jeffy answered 2 years ago

Based on the following table of the tax rates, what is the average tax rate for a firm with taxable income of $120,000?

Based on the following table of the tax rates, what is the average tax rate for a firm with taxable income of $120,000?Taxable Income ($)Tax Rate0 – 50,00015%50,000 – 75,00025%75,000 – 100,00034%100,000 – 335,00039%39%20%34%25%None of the above

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%

Given the following rates for the income tax, calculate this person's average tax rate for a...

Given the following rates for the income tax, calculate this person's average tax rate for a taxable income of $70,000 Please show your work Income bracket Marginal tax rate $0- $10,000 10% $10,000 - $30,000 20% $30,000 - $60,000 25% $60,000 - $80,000 30% Over $100,000 40%

Write a program that determines the income tax rates for a state. Tax rates are based on the salary according to the following table:

in java Code Problem 2 Write a program that determines the income tax rates for a state. Tax rates are based on the salary according to the following table: 0 – 25000 Dollars 10% 25001 - 50000 Dollars 15% 50001 - 75000 Dollars 20% Over 75000 Dollars 35% Write the program so that it asks the user how many taxpayers should be processed and use the number of taxpayers to control the end of the program. For each taxpayer, you will need to input the...

A) What is the difference between the marginal tax rate and the average tax rate? What...

A) What is the difference between the marginal tax rate and the average tax rate? What is the difference between the statutory tax rate and the effective tax rate? Explain. B) Compare and contrast tax deductions and tax credits in terms of both efficiency and vertical equity. C)Is it possible for the government to impose a tax that causes the market price of the good to fall? Explain.

Determine the average tax rate and the marginal tax rate for each of the following instances:...

Determine the average tax rate and the marginal tax rate for each of the following instances: (Use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000. Round "Average tax rate" to 1 decimal place.) Use the appropriate Tax Tables or Tax Rate Schedules. A married couple filing jointly with taxable income of $47,302. A married couple filing jointly with taxable income of $208,779. A married couple filing...

Explain the computation of, and the relevance of, the following: Marginal Tax Rate Average Tax Rate...

Explain the computation of, and the relevance of, the following: Marginal Tax Rate Average Tax Rate Effective Tax Rate

Excise tax rates on tobacco and tobacco products increase in March and September based on average...

Excise tax rates on tobacco and tobacco products increase in March and September based on average weekly ordinary time earnings. Perform a web-search to determine the amount of excise tax charged (as at 1 January 2018) on a standard 20 packet of cigarettes. If the standard packet is sold for a price of $30, how much is the before tax price? Illustrate using the demand and supply model, the effects of a tax imposed on sellers of tobacco products. Explain...

The following table shows the average hourly wage rates for? day-care centers from two locations based...

The following table shows the average hourly wage rates for? day-care centers from two locations based on two random samples. Use the table to complete parts a through c. Location 1 Location 2 Sample mean ?$9.64 ?$8.65 Sample standard deviation ?$1.19 ?$1.27 Sample size 27 32 a. Perform a hypothesis? test, using alpha=0.05?, to determine if the average hourly wage for? day-care workers in Location 1 is? $0.50 per hour higher than the average hourly wage for? day-care workers in...

The following table shows the average hourly wage rates for day-care centers from two locations based...

The following table shows the average hourly wage rates for day-care centers from two locations based on two random samples. Use the table to complete parts a through c. Location 1 Location 2 Sample mean $ 9.64 $ 8.55 Sample standard deviation $ 1.31 $ 1.13 Sample size 29 31 a. Perform a hypothesis test, using α=0.10, to determine if the average hourly wage for day-care workers in Location 1 is $0.50 per hour higher...

Question