Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000:Taxable incomeUp to $47,630On the next $47,629On the next $52,408On the next $62,704Over $210,371Select one:Tax Rate15%20.5%Based on the above, the average tax rate (ATR) is closest to:a. 19.15%b. 19,45%c. 20.5%d. 26.0%26%29%33%

It is the rate at which the tax is payable on the total income on the average basis. The average tax…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: