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

Question

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%

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7 days 2021-10-06T11:24:27+00:00 2 Answers 0

Option C is correct ,14.2%

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

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%