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%

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

Answers ( )

    0
    2021-10-06T11:25:30+00:00

    Answer:

    Option C is correct ,14.2%

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

    0
    2021-10-06T11:26:03+00:00

    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%

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )