Question

Bama & Co. owes a total of $21,684 in taxes for this year. The taxable income...

Bama & Co. owes a total of $21,684 in taxes for this year. The taxable income is $61,509. If the firm earns $100 more in income, it will owe an additional $56 in taxes. What is the average tax rate on income of $71,609?

Group of answer choices

33.33 percent

35.00 percent

28.00 percent

35.29 percent

30.33 percent

0 0
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Answer #1

C. 35.29 percent

Average tax rate = ($21,684 + $56)/$61,609 = 35.29 percent

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