Jurisdiction M imposes an individual income tax based on the following schedule.

Rate Income bracket
5% $-0- to $50,000
+ 8% $50,001 to $200,000
+ 12% $200,001 and above

Mrs. Hill has $200,000 taxable income. Determine the marginal tax rate for taxable income.

Question

Jurisdiction M imposes an individual income tax based on the following schedule.

Rate	Income bracket
5%	$-0- to $50,000
+ 8%	$50,001 to $200,000
+ 12%	$200,001 and above

Mrs. Hill has $200,000 taxable income. Determine the marginal tax rate for taxable income.

BlackTom AI · Accepted Answer

To determine the marginal tax rate, we must identify the rate that applies to the last dollar earned, i.e., the rate for income just above the current bracket boundary.
Option 1: 5.00% — This is the rate for the first bracket (0 to 50,000). It does not apply to income in the higher brackets, so it cannot be the marginal rate for 200,000.
Option 2: 8.00% — This rate applies to the 50,001 to 200,000 range. While Mrs. Hill’s income falls within this bracket, the marginal rate concerns the next dollar earned beyond the current bracket boundary, so 8% is not the marginal rate at 200,000.
Option 3: 8.33% — This value does not correspond to any bracket in the schedule and appears to be a distractor. Marginal rates come from the given bracket percentages, not from an average or blended figure.
Option 4: 12.00% — This is the rate that applies to income above 200,000 (the 200,001 and above bracket). Although 200,000 itself is within the 8% bracket, the next dollar earned would be taxed at 12%, making 12.00% the correct marginal rate for taxable income of 200,000.
Thus, the correct marginal tax rate is the rate applicable to income just beyond 200,000, which is 12.00%.

SP25-BL-BUS-A327-1377 Exam 1 Practice

Jurisdiction M imposes an individual income tax based on the following schedule. Rate Income bracket 5% $-0- to $50,000 + 8% $50,001 to $200,000 + 12% $200,001 and above Mrs. Hill has $200,000 taxable income. Determine the marginal tax rate for taxable income.

查看解析

登录即可查看完整答案

类似问题

Say your income is $50K. Given the following tax brackets, what is your marginal tax rate? Tax rate Taxable Income (Single) 10% Up to $9,875 12% $9,876 to $40,125 22% $40,126 to $85,525 24% $85,526 to $163,300

The tax rate that is the percentage of tax on the next dollar you earn is the:

Monroe County levies a real property tax based on the following schedule. Rate Assessed value 3% $-0- to $250,000 + 1% $250,001 and above ABC Incorporated owns real property valued at $700,000. Determine ABC's marginal tax rate for taxable income.

Jurisdiction M imposes an individual income tax based on the following schedule. Rate Income bracket 5% $-0- to $50,000 + 8% $50,001 to $200,000 + 12% $200,001 and above Ms. Smith has $40,000 taxable income. Determine the marginal tax rate.

Jurisdiction M imposes an individual income tax based on the following schedule. Rate Income bracket 5% $-0- to $50,000 + 8% $50,001 to $200,000 + 12% $200,001 and above Mrs. Hill has $190,000 taxable income. Determine the marginal tax rate.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单