Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill for 2015 was $12,000 and her annual interest payment on her mortgage was $9,500. Based on this information, what is Ann's total income tax shield (i.e. how much is Ann saving on her income taxes)? OA. $3,515.00 O B. $6,450.00 OC. $7,955.00 OD.$4,400.00

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 31P
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QUESTION 2
Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill for 2015 was $12,000 and her annual interest payment on
her mortgage was $9,500. Based on this information, what is Ann's total income tax shield (i.e. how much is Ann saving on her income taxes)?
O A. $3,515.00
O B. $6,450.00
OC. $7,955.00
O D. $4,400.00
Transcribed Image Text:QUESTION 2 Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill for 2015 was $12,000 and her annual interest payment on her mortgage was $9,500. Based on this information, what is Ann's total income tax shield (i.e. how much is Ann saving on her income taxes)? O A. $3,515.00 O B. $6,450.00 OC. $7,955.00 O D. $4,400.00
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