Jamie has taxable income of $103,890. She is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income, 25% of the amount over $28,400 up to $80,000, and 35% over $80,000. What is Jamie's average tax rate? (keep 4 decimal places)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jamie has taxable income of $103,890. She is single and her tax rates are 10% on the first $7,000
of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income, 25% of the
amount over $28,400 up to $80,000, and 35% over $80,000. What is Jamie's average tax rate?
(keep 4 decimal places)
Transcribed Image Text:Jamie has taxable income of $103,890. She is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income, 25% of the amount over $28,400 up to $80,000, and 35% over $80,000. What is Jamie's average tax rate? (keep 4 decimal places)
Expert Solution
Step 1: Introduction to Average Tax rate

 Average Tax rate:-

  • It is the total tax liability divided by the total taxable income of the taxpayer.


  • Formula - A v e r a g e space T a x space r a t e equals fraction numerator J a m i e space t a x space l i a b i l i t y over denominator J a m i e space t a x a b l e space i n c o m e end fraction space cross times 100.


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