Refer to Scenario 19

question 6

Multiple Choice

Refer to Scenario 19.1 below to answer the question(s) that follow.
SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%.
-Refer to Scenario 19.1. When this person earns $70,000, her average tax rate is

• A) 20.7%.
• B) 22.5%.
• C) 25%.
• D) indeterminate from this information.

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Definitions:

Intoxicated People

Individuals under the influence of alcohol or drugs to a degree that impairs their abilities and decision-making capacities.

Disaffirm Agreements

The legal action of renouncing or rejecting a contract or agreement, especially by minors.

Restatement (Second)

A collection of model legal principles designed to clarify, modernize, and otherwise improve American common law, particularly in contracts and torts.

Intoxication

A state of being under the influence of drugs or alcohol, affecting cognitive and physical functions.