Leonardo, Who Is Married but Files Separately, Earns $80,000 of Taxable

question 60

Multiple Choice

Leonardo, who is married but files separately, earns $80,000 of taxable income.He also has $15,000 in city of Tulsa bonds.His wife, Theresa, earns $50,000 of taxable income. If Leonardo instead had $30,000 of additional tax deductions for 2019, his marginal tax rate (rounded) on the deductions would be: (Use tax rate schedule.)

• A)12.00 percent
• B)13.88 percent
• C)22.00 percent
• D)24.00 percent
• E)None of the choices are correct

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Definitions:

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Maturity Date

The final day of a note on which the borrower (the maker of the note) pays the face value and any interest due to the holder of the note. The due date.

Dollar Amount

The specific value of a transaction or balance in currency terms.

Interest Earned

The income received from investing in financial instruments or depositing money in interest-bearing accounts.