Suppose a Taxpayer Has an Income of $70,000 and a Taxable

question 29

Multiple Choice

Suppose a taxpayer has an income of $70,000 and a taxable income of $60,000,and pays $9,000 in taxes.If the taxpayer says she is taxed at a 15 percent tax rate,she is referring to the

• A)Marginal tax rate.
• B)Nominal tax rate.
• C)Effective tax rate.

---

Definitions:

Standard Cost

A predetermined cost of manufacturing, purchasing, or using a product or service, used in budgeting and variance analysis.