b.
His average tax rate is 50.23 percent, and the marginal tax rate on his salary is 70.3 percent.
c.
His average tax rate is 53.63 percent, and the marginal tax rate on his salary is 70.3 percent.
d.
His average tax rate is 55.79 percent, and the marginal tax rate on his salary is 70.3 percent.
Table 12-3
Income
$0 to $40,000
Over $40,000
137. Refer to Table 12-3. What is the marginal tax rate for a person who makes $35,000?
a.
20%
b.
30%
c.
40%
d.
50%
138. Refer to Table 12-3. What is the marginal tax rate for a person who makes $60,000?
a.
20%
b.
30%
c.
40%
d.
50%
139. Refer to Table 12-3. What is the average tax rate for a person who makes $60,000?
a.
20%
b.
30%
c.
40%
d.
50%
Table 12-4
Income
$0 to $40,000
$40,000 to $100,000
Over $100,000
140. Refer to Table 12-4. What is the marginal tax rate for a person who makes $35,000?
a.
25%
b.
30%
c.
40%
d.
60%
141. Refer to Table 12-4. What is the marginal tax rate for a person who makes $50,000?
a.
25%
b.
28%
c.
40%
d.
60%
142. Refer to Table 12-4. What is the marginal tax rate for a person who makes $130,000?
a.
30%
b.
40%
c.
50%
d.
60%
143. Refer to Table 12-4. What is the average tax rate for a person who makes $130,000?
a.
30%
b.
40%
c.
50%
d.
60%
Table 12-5
Income
Tax rate
$0 to $50,000
20%
$50,001 to $100,000
40%
Over $100,000
60%
144. Refer to Table 12-5. What is the marginal tax rate for a person who makes $37,000?
a.
9.25%
b.
20%
c.
25%
d.
40%
145. Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?
a.
20%
b.
23%
c.
40%
d.
45%
146. Refer to Table 12-5. What is the marginal tax rate for a person who makes $120,000?
a.
25%
b.
35%
c.
45%
d.
60%
147. Refer to Table 12-5. What is the average tax rate for a person who makes $120,000?
a.
25%
b.
35%
c.
45%
d.
60%
Table 12-6
The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income.
On Taxable Income…
The Tax Rate is…
$0 to $10,000
10%
$10,000 to $30,000
25%
$30,000 to $60,000
35%
$60,000 to $110,000
40%
$110,000 to $180,000
43%
Over $180,000
45%
148. Refer to Table 12–6. For this tax schedule, what is the marginal tax rate for an individual with taxable income of
$49,000?
a.
0%
b.
10%
c.
25%
d.
35%
149. Refer to Table 12–6. For this tax schedule, what is the marginal tax rate for an individual with $212,000 in taxable
income?
a.
0%
b.
1%
c.
2%
d.
45%
150. Refer to Table 12–6. For this tax schedule, what is the average tax rate for an individual with $49,000 in taxable
income?
a.
25.8%
b.
27.5%.
c.
40.0%
d.
43.7%
151. Refer to Table 12–6. For this tax schedule, what is the average tax rate for an individual with $280,000 in taxable
income?
a.
39.9%
b.
40.2%
c.
42.7%
d.
44.8%
152. Refer to Table 12–6. For this tax schedule, what is the total income tax due for an individual with $49,000 in taxable
income?
a.
$12,650
b.
$14,370
c.
$15,960
d.
$16,220
153. Refer to Table 12–6. For this tax schedule, what is the total tax liability for an individual with $280,000 in taxable
income?
a.
$105,700
b.
$108,900
c.
$111,600
d.
$117,300
Table 12-7
The following table shows the marginal tax rates for unmarried individuals for two years.
2009
2010
On Taxable Income…
The Tax Rate is…
On Taxable Income…
The Tax Rate is…
$0 to $15,000
10%
Over $0
20%
$15,000 to $40,000
15%
$40,000 to $75,000
20%
$75,000 to $120,000
25%
Over $120,000
30%
154. Refer to Table 12–7. For an individual who earned $80,000 in both years, which of the following statements is true
regarding the individual’s marginal tax rate?
a.
The marginal tax rate is higher in 2010 than in 2009.
b.
The marginal tax rate is the same in 2010 as it was in 2009.
c.
The marginal tax rate is lower in 2010 than in 2009.
d.
With a proportional tax, as in 2010, it is not possible to determine the individual’s marginal tax rate so it is not
possible to compare the marginal tax rates in the two years.
155. Refer to Table 12–7. For an individual who earned $80,000 of taxable income in 2009, what was the individual’s
average tax rate in 2009?
a.
12.7%
b.
15.0%
c.
16.1%
d.
16.9%
156. Refer to Table 12–7. For an individual who earned $35,000 in taxable income in both years, which of the following
describes the change in the individual’s marginal tax rate between the two years?
a.
The marginal tax rate increased from 2009 to 2010.
b.
The marginal tax rate decreased from 2009 to 2010.
c.
The marginal tax rate remained constant from 2009 to 2010.
d.
The change in the marginal tax rate cannot be determined for the two tax schedules shown.
157. Refer to Table 12–7. For an individual who earned $35,000 in taxable income in both years, which of the following
describes the change in the individual’s average tax rate between the two years?
a.
The average tax rate increased from 2009 to 2010.
b.
The average tax rate decreased from 2009 to 2010.
c.
The average tax rate remained constant from 2009 to 2010.
d.
The change in the average tax rate cannot be determined for the two tax schedules shown.
Table 12-8
The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the
income levels shown.
Amount of Tax Due
Income
Tax Schedule A
Tax Schedule B
Tax Schedule C
Tax Schedule D
$50,000
$10,000
$20,000
$17,500
$15,000
$100,000
$30,000
$30,000
$25,000
$30,000
$200,000
$80,000
$40,000
$30,000
$60,000
158. Refer to Table 12–8. For an individual with $200,000 in taxable income, which tax schedule has the lowest average
marginal tax rate?
a.
Tax Schedule A
b.
Tax Schedule B
c.
Tax Schedule C
d.
Tax Schedule D
159. Refer to Table 12–8. For an individual with $200,000 in taxable income, which tax schedule has the highest average
tax rate?
a.
Tax Schedule A
b.
Tax Schedule B
c.
Tax Schedule C
d.
Tax Schedule D
Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.
2012 Tax Rates
Income Ranges
2013 Tax Rates
Income Ranges
15%
$0 – $28,000
10%
$0 – $10,000
28%
$28,000 – $70,000
15%
$10,000 – $30,000
31%
$70,000 – $140,000
27%
$30,000 – $60,000
36%
$140,000 – $300,000
30%
$60,000 – $150,000
40%
over $300,000
35%
$150,000 – $320,000
38%
over $320,000
160. Refer to Table 12-9. Bill is a single person whose taxable income is $35,000 a year. What is his average tax rate in
2012?
a.
17.6%
b.
20.5%
c.
21.3%
d.
26.2%
161. Refer to Table 12-9. Bill is a single person whose taxable income is $35,000 a year. What is his average tax rate in
2013?
a.
15.3%
b.
17.6%
c.
21.3%
d.
24.8%
162. Refer to Table 12-9. Bill is a single person whose taxable income is $35,000 a year. What happened to his average
tax rate between 2012 and 2013?
a.
It increased.
b.
It decreased.
c.
It did not change.
d.
We do not have enough information to answer this question.
163. Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What is his average tax rate in
2012?
a.
10%
b.
12.5%
c.
15%
d.
28%
164. Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What is his average tax rate in
2013?
a.
10%
b.
12.5%
c.
15%
d.
28%
165. Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What happened to his average
tax rate between 2012 and 2013?
a.
It increased.
b.
It decreased.
c.
It did not change.
d.
We do not have enough information to answer this question.
166. Refer to Table 12-9. Darby is a single person whose taxable income is $320,000 a year. What happened to her
average tax rate between 2012 and 2013?
a.
It increased.
b.
It decreased.
c.
It did not change.
d.
We do not have enough information to answer this question.
167. Refer to Table 12-9. Samantha is a single person whose taxable income is $100,000 a year. What is her average tax
rate in 2012?
a.
22.3%
b.
25.3%
c.
27.8%
d.
28.4%
168. Refer to Table 12-9. Samantha is a single person whose taxable income is $100,000 a year. What is her average tax
rate in 2013?
a.
24.1%
b.
26.4%
c.
27.8%
d.
30.9%
169. Refer to Table 12-9. Samantha is a single person whose taxable income is $100,000 a year. What happened to her
average tax rate between 2012 and 2013?
a.
It increased.
b.
It decreased.
c.
It did not change.
d.
We do not have enough information to answer this question.
170. Refer to Table 12-9. Harry is a single person whose taxable income is $35,000 a year. What is his marginal tax rate
in 2012?
a.
15%
b.
28%
c.
31%
d.
36%
171. Refer to Table 12-9. Harry is a single person whose taxable income is $35,000 a year. What is his marginal tax rate
in 2013?
a.
10%
b.
15%
c.
27%
d.
30%
172. Refer to Table 12-9. Harry is a single person whose taxable income is $35,000 a year. What happened to his
marginal tax rate between 2012 and 2013?
a.
It increased.
b.
It decreased.
c.
It did not change.
d.
We do not have enough information to answer this question.
173. Refer to Table 12-9. Ruby Sue is a single person whose taxable income is $100,000 a year. What is her marginal tax
rate in 2012?
a.
15%
b.
28%
c.
31%
d.
36%
174. Refer to Table 12-9. Ruby Sue is a single person whose taxable income is $100,000 a year. What is her marginal tax
rate in 2013?
a.
15%
b.
27%
c.
30%
d.
35%
175. Refer to Table 12-9. Ruby Sue is a single person whose taxable income is $100,000 a year. What happened to her
marginal tax rate between 2012 and 2013?
a.
It increased.
b.
It decreased.
c.
It did not change.
d.
We do not have enough information to answer this question.
Table 12–10
On Taxable Income …
The Tax Rate is …
Up to $8,375
10%
From $8,375 to $34,000
15
From $34,000 to $82,400
25
From $82,400 to $171,850
28
From $171,850 to $373,650
33
Over $373,650
35
176. Refer to Table 12–10. If Miss Kay has $80,000 in taxable income, her tax liability is
a.
$11,581.
b.
$16,181.
c.
$20,000.
d.
$24,881.