Reference no: EM132686825
Question - Assume that Romeo and Juilet, a married couple, have taxable income of $100,000 which is taxed according to the following table below:
Taxable Income Tax Rate
0 to $30,000 10%
$30,001 to $60,000 20%
$60,001 to $90,000 30%
$90,001 to $120,000 35%
Romeo and Juilet's marginal tax rate and their average tax rate.
Required - What is marginal rate and average tax rate?
A. Marginal Tax Rate = 35%, Average Tax Rate = 21.5%
B. Marginal Tax Rate = 35%, Average Tax Rate = 23.75%
C. Marginal Tax Rate = 21.5%, Average Tax Rate = 35%
D. Marginal Tax Rate = 23.75%, Average Tax Rate = 21.5%
E. Marginal Tax Rate = 35%, Average Tax Rate = 35%