Question

The tax rates are as shown. taxable income tax rate $0 – 50,000 15% 50,001 – 75,000 25% 75,001 – 100,000 34% 100,001 – 335,000 39% what is the average tax rate for a firm with taxable income of $129,513?

Answer 1

To get the answer, first you have to identify at which rate is your taxable income falls. From the rage of 100,001 – 335,000, it have 39%. Then you will just simple multiply it.
Income x 0.39 = tax rate
the answer is $50,510.07.