Compute the Tax Rates for the Three Taxpayers Shown in Table

question 52

Multiple Choice

Compute the tax rates for the three taxpayers shown in Table 33.1.Then use the table to answer the indicated question. $\begin{array}{|c|r|r|r|r|r|}\hline \text { Taxpayer } & \begin{array}{c}\text { Income } \\\text { (Dollars) }\end{array} & \begin{array}{c}\text { Taxable } \\\text { Income } \\\text { (Dollars) }\end{array} & \begin{array}{c}\text { Taxes Paid } \\\text { (Dollars) }\end{array} & \begin{array}{c}\text { Effective Tax } \\\text { Rate(Percent) }\end{array} & \begin{array}{r}\text { Nominal Tax } \\\text { Rate(Percent) }\end{array} \\\hline 1 & \$ 200,000 & \$ 100,000 & \$ 6,000 & \% & \% \\\hline 2 & 100,000 & 80,000 & 8,000 & \% & \% \\\hline 3 & 60,000 & 48,000 & 12,000 & \% & \% \\\hline\end{array}$ In Table 33.1,the nominal tax rate for taxpayer 2 is

• A)12.5 percent.
• B)8.0 percent.
• C)10.0 percent.
• D)25.0 percent.

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