What is the average tax rate for a firm with taxable income of $118,740 in 2017? Taxable Income Tax Rate $ 0 - 50,000 15 % 50,001 - 75,000 25 75,001 - 100,000 34 100,001 - 335,000 39 Group of answer choices 34.87 percent 39.00 percent 24.89 percent 26.68 percent

Question

Business

Madden Odonnell

30 March, 21:16

What is the average tax rate for a firm with taxable income of $118,740 in 2017? Taxable Income Tax Rate $ 0 - 50,000 15 % 50,001 - 75,000 25 75,001 - 100,000 34 100,001 - 335,000 39 Group of answer choices 34.87 percent 39.00 percent 24.89 percent 26.68 percent

+2

Answers (1)

Know the Answer?

Iris Buckley · Answer 1

24.89 percent

Explanation:

The first $50000 is taxed at 15%;

The next (75000 - 50000) = $25000 is taxed at 25% and so on.

then:

Total taxes

= (50000*0.15) + (25000*0.25) + (25000*0.34) + (18740*0.39)

= $29558.60

Then the average tax rate is given by:

=Total taxes/Taxable income

= $29558.60/$118740

= 24.89%