Maureen Smith Is a Single Individual ?
What Is Her Average Tax Rate?
?
A) 19

question 113

Multiple Choice

Maureen Smith is a single individual.She claims one exemption of $4,050 for herself and claims a standard deduction of $6,350.Her salary for the year was $71,850.Assume the following tax table is applicable.
?
Single Individuals
? $\begin{array}{lccc} & \text { You Pay This } & \text { Plus This Percentage } & \text { Average Tax } \\\text { If Your Taxable } & \text { Amount on the } & \text { on the Excess over the } & \text { Rate at } \\\text { Income Is } & \text { Base of the Bracket } & \text { Base } & \text { Top of Bracket } \\\hline\text { Up to } \$ 9,325 & \$ 0.00 & 10.0 \% & 10.0 \% \\\$ 9,325-\$ 37,950 & 932.50 & 15.0 & 13.8 \\\$ 37,950-\$ 91,900 & 5,226.25 & 25.0 & 20.4 \\\$ 91,900-\$ 191,650 & 18,713.75 & 28.0 & 24.3 \\\$ 191,650-\$ 416,700 & 46,643.75 & 33.0 & 29.0 \\\$ 416,700-\$ 418,400 & 120,910.25 & 35.0 & 29.0 \\\text { Over } \$ 418,400 & 121,505.25 & 39.6 & 39.6\end{array}$
?
What is her average tax rate?
?

• A) 19.87%
• B) 14.63%
• C) 17.70%
• D) 18.07%
• E) 19.33%

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Definitions:

Strip Bond

A bond where both the principal and regular interest payments have been removed, typically sold at a discount and pays no interest until maturity.

Yield Rate

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage based on the investment's cost, current market value, or face value.

Strip Bond

A debt security that has had its principal and coupon payments detached and sold separately.

Compounded Semi-annually

Interest calculated on the initial principal and the interest that has been added on a bi-annual basis.