Maureen Smith is a single individual. She claims a standard deduction of $12,400. Her salary for the year was $188,000. Assume the following tax table is applicable. Single Individuals You Pay This Amount Plus This Percentage on the If Your Taxable Income Is Up to $9,875 $9,875-$40,125 $40,125-$85,525 $85,525-$163,300 $163,300-$207,350 on the Base of the Excess over the Bracket Base Average Tax Rate at Top of Bracket $0.00 10.0% 10.0% 987.50 12.0 11.5 4,617.50 22.0 17.1 14,605.50 24.0 20.4 33,271.50 32.0 22.8 $207,350-$518,400 47,367.50 35.0 30.1 Over $518,400 156,235.00 37.0 37.0 What is her marginal tax rate? O a. 12.0% O b. 32.0% O c. 35.0% Od. 24.0% Oe. 22.0%
Maureen Smith is a single individual. She claims a standard deduction of $12,400. Her salary for the year was $188,000. Assume the following tax table is applicable. Single Individuals You Pay This Amount Plus This Percentage on the If Your Taxable Income Is Up to $9,875 $9,875-$40,125 $40,125-$85,525 $85,525-$163,300 $163,300-$207,350 on the Base of the Excess over the Bracket Base Average Tax Rate at Top of Bracket $0.00 10.0% 10.0% 987.50 12.0 11.5 4,617.50 22.0 17.1 14,605.50 24.0 20.4 33,271.50 32.0 22.8 $207,350-$518,400 47,367.50 35.0 30.1 Over $518,400 156,235.00 37.0 37.0 What is her marginal tax rate? O a. 12.0% O b. 32.0% O c. 35.0% Od. 24.0% Oe. 22.0%
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
Problem 22MCQ: Melodie's taxable income is $39,000 and she pays income tax of $4,489. If Melodie's taxable income...
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Transcribed Image Text:Maureen Smith is a single individual. She claims a standard deduction of $12,400. Her salary for the year was $188,000. Assume the following tax table is
applicable.
Single Individuals
You Pay This Amount
Plus This
Percentage on the
If Your Taxable
Income Is
Up to $9,875
$9,875-$40,125
$40,125-$85,525
$85,525-$163,300
$163,300-$207,350
on the Base of the
Excess over the
Bracket
Base
Average Tax
Rate at Top of
Bracket
$0.00
10.0%
10.0%
987.50
12.0
11.5
4,617.50
22.0
17.1
14,605.50
24.0
20.4
33,271.50
32.0
22.8
$207,350-$518,400
47,367.50
35.0
30.1
Over $518,400
156,235.00
37.0
37.0
What is her marginal tax rate?
O a. 12.0%
O b. 32.0%
O c. 35.0%
Od. 24.0%
Oe. 22.0%
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