Question

Leonardo, who is married but files separately, earns $190,000 of taxable income. He also has $16,250 in city of Tulsa bonds. His wife, Theresa, earns $70,000 of taxable income.

If Leonardo and his wife file married filing jointly in 2018, what would be their effect tax rate (rounded)? (Use tax rate schedule)

rev: 02_04_2019_QC_CS-156778

Multiple Choice

• 16.33%

• 20.08%

• 25.37%

• 26.33%

• None of the choices are correct.%

Answer 1

10%	0	19050	1905
12%	19050	58350	7002
22%	77400	87600	19272
24%	165000	95000	22800
32%	260000
		Total Tax	50979

Effective rate of tax = $50979 / ($190000 + $70000 + $16250) = 18.45%

Answer is e. None of the choices are correct