Question

Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule: Over--------But Not Over---------Tax Rate $0.................$43,850...................15% $43,850..........$105,950..................??? $105,950........ $361,450.................31% If the total personal income tax they pay is $59,316, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)?.

	a.	23%
	b.	25%
	c.	24%
	d.	21%
	e.	22%

Answer 1

Tax paid for first $43850	6577.5	=43850*15%
Taxable income between $105,950-$361,450	124050	=230000-105950
Taxable payable between $105,950-$361,450	38455.5	=124050*31%
Remaining tax payable	14283	=59316-6577.5-38455.5
Divide by Remaining taxable income	62100	=105950-43850
Tax rate between $43,850 and 105,950	23%
Option A 23% is correct