A person, who is in the 28% tax bracket and owes $20,000 on $100,000 of taxable income, has <u>d. 20% for average and 28% for marginal.</u>
<h3>What are average and marginal tax rates?</h3>
The average tax rate is the product of tax liability over taxable income, multiplied by 100. The marginal tax rate is the product of the additional tax paid over additional taxable income, multiplied by 100.
<h3>Data and Calculations:</h3>
Tax bracket = 28%
Taxable income = $100,000
Tax liability = $20,000
Average tax rate = 20% ($20,000/$100,000 x 100)
Marginal tax rate = 28%
<h3>Answer Options:</h3>
a. 24% for average and 28% for marginal
b. 28% for both
c. Impossible to determine
d. 20% for average and 28% for marginal
Thus, a person, who is in the 28% tax bracket and owes $20,000 on $100,000 of taxable income, has <u>d. 20% for average and 28% for marginal</u>.
Learn more about marginal tax rates at brainly.com/question/25641320
