Refer to Scenario 19

question 27

Multiple Choice

Refer to Scenario 19.2 below to answer the question(s) that follow.
SCENARIO 19.2: An individual earning $40,000 pays $3,200 in taxes. The marginal tax rate on any income earned above $40,000 is 20%.
-Refer to Scenario 19.2. When this person earns $60,000, her tax payment would be

• A) $4,000.
• B) $7,200
• C) $12,000.
• D) indeterminate from this information.