Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule: over not tax rate 0 $43,850 15% $43,850 $105,950 ??? $105,950 $361,450 31% If the total personal income tax they pay is $58,695, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)? Select one: a. 21% b. 24% c. 23% d. 22% e. 25%
Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule: over not tax rate 0 $43,850 15% $43,850 $105,950 ??? $105,950 $361,450 31% If the total personal income tax they pay is $58,695, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)? Select one: a. 21% b. 24% c. 23% d. 22% e. 25%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule:
| over | not | tax rate |
| 0 | $43,850 | 15% |
| $43,850 | $105,950 | ??? |
| $105,950 | $361,450 | 31% |
If the total personal income tax they pay is $58,695, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)?
Select one:
a.
21%
b.
24%
c.
23%
d.
22%
e.
25%
Expert Solution
Step 1
Taxable income is that income in which a person has to pay tax after availing all exemptions.
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