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

question 56

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 is Leonardo and Theresa's effective tax rate for 2019 (rounded) ? (Use tax rate schedule.)

• A)12.00 percent
• B)15.63 percent
• C)21.04 percent
• D)22.00 percent
• E)None of the choices are correct

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Definitions:

Insurance Premiums

Payments made to an insurance company in exchange for coverage, which can be due monthly, quarterly, or annually.

Straight-life Policy

A type of life insurance policy where premiums are paid throughout the policyholder's lifetime, with benefits paid out upon death.

Maximum Loan

The largest amount of money that one can borrow from a lender under specified terms.

Insured

An insured individual is someone who is covered under an insurance policy, protecting them against certain risks or losses.