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Duela Dent is single and had $188,800 in taxable income. Use the rates from Table 2.3. a. What is the average tax rate? (Do nTABLE 2.3 Taxable income Tax Rate O Personal tax rates for 2018 (unmarried individuals) 10% 12 22 24 9,525 9,525- 38,700 38,7

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Answer #1
Duela Dent's taxable income 188800
Duela Dent's total tax .10*9525 + .12*29175 + .22*43800 + .24*75000 + .32*31300
Duela Dent's total tax 42105.5
The average tax rate 42105.5/188800
The average tax rate 0.223016
a) AVERAGE TAX RATE = 22.30%
b) The marginal tax rate is the tax on the next dollar of income earned.
Marginal tax rate = 32%.
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