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

question 90

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 and his wife file married filing jointly in 2019, what would be their average tax rate (rounded) ? (Use tax rate schedule.)

• A)12.00 percent
• B)22.00 percent
• C)15.63 percent
• D)18.70 percent
• E)None of the choices are correct

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Definitions:

Individuals

Refers to single human beings, considered separately from their societal or familial roles or status.

Capital Contributions

Financial or other assets provided by owners or investors to a company, increasing its equity.

Capital Balance

The amount of funds contributed by owners or partners to a business, plus any retained earnings or subtracted losses, constituting the equity portion of the balance sheet.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.