The following table presents the total tax liability for an unmarried taxpayer u

Question

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 Tax Schedule Tax Schedule Tax Schedule ? $50,000 $100,000 $30,000 $200,000 $80,000 $20,000 $30,000 $40,000 $17,500 $25,000 $30,000 $15,000 $30,000 $60,000 $10,000 Refer to Table 12-8. For an individual with $200,000 in taxable income, which tax schedule has the lowest average marginal tax rate? O a. Tax Schedule A O b. Tax Schedule B O c. Tax Schedule C O d. Tax Schedule D

Explanation / Answer

Margina Averge tax rate (MATR)=Tax Paid /Income

MATR for A=80000/200000=40%

MATR for B=40000/200000=20%

MATR for C=30000/200000=15%

MATR for D=60000/200000=30%

Lowest average marginal tax rate is 15% for C

Option C is correct answer

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