Question

Using the provided table, calculate the effective tax rate for a single taxpayer with a taxable income of $52,000.

Answer 1

Answer:

Option C is correct ,14.2%

Step-by-step explanation: Got it right on PLATO

Answer 2

Answer:

Option C is correct ,14.2%

Step-by-step explanation:

In order to determine the effective tax rate of a taxpayer with taxable income of $52,000,the starting point to determine how much in taxes the taxpayer pays as shown below:

First tax bracket=$9,525*10%=$952.5

Second tax bracket=$952.50+(12%*($38700-$9,525))

                                =$952.50+$3501

Third tax bracket(where the taxpayer belongs)=4453.5 +(22%*($52,000-$38,700))

third tax bracket tax=4453.5+$2926 =$7379.5

Since the total tax payable of  $7379.5   is now computed,

effective tax rate=tax paid/taxable income=7379.5/52000 =14.2%