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

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

Single Taxpayers: Income Brackets

Tax Rate Income Bracket Tax Owed

10% 0 to 9,525 10% of taxable income

12% 9,526 to 38,700 $952.50 plus 12% of the excess over $9,525

22% 38,701 to 82,500 $4,453.50 plus 22% of the excess over $38,700

24% 82,501 to 157,500 $14,089.50 plus 24% of the excess over $82,500

32% 157,501 to 200,000 $32,089.50 plus 32% of the excess over $157,500

35% 200,001 to 500,000 $45,689.50 plus 35% of the excess over $200,000

37% > 500,000 $150,689.50 plus 37% of the excess over $500,000

A.

12.0%

B.

13.9%

C.

14.2%

D.

22.0%

## Answers ( )

Answer:Option C is correct ,14.2%

Step-by-step explanation: Got it right on PLATOAnswer: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%