Compute the Tax Rates for the Three Taxpayers Shown in Table

question 105

Multiple Choice

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

• A)5.0 percent.
• B)8.0 percent.
• C)20.0 percent.
• D)25.0 percent.

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Definitions:

Posture

The position in which someone holds their body when standing or sitting.

Cerebellum

The cerebellum is a major structure of the brain located beneath the cerebrum, responsible for coordinating voluntary movements, balance, and posture.

Brain Stem

The Brain Stem is the posterior part of the brain, adjoining and structurally continuous with the spinal cord, responsible for controlling basic life functions.

Medulla

The innermost part of an organ or structure, such as the medulla oblongata in the brain which controls vital functions like breathing and heart rate.