Alan and Sara Winthrop Are a Married Couple Who File

question 67

Multiple Choice

Alan and Sara Winthrop are a married couple who file a joint income tax return.They have two children,so they claim a total of 4 exemptions ($4,050 for each exemption) .In addition,they have legitimate itemized deductions totaling $25,750.Their total income from wages is $271,300.Assume the following tax table is applicable:
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Married Couples Filing Joint Returns
? $\begin{array}{lccc} & \text { You Pay This } & \text { Plus This Percentage } & \text { Average Tax } \\\text { If Your Taxable } & \text { Amount on the } & \text { on the Excess over the } & \text { Rate at } \\\text { Income Is } & \text { Base of the Bracket } & \text { Base } & \text { Top of Bracket } \\\hline\text { Up to } \$ 18,650 & \$ 0.00 & 10.0 \% & 10.0 \% \\\$ 18,650-\$ 75,900 & 1,865.00 & 15.0 & 13.8 \\\$ 75,900-\$ 153,100 & 10,452.50 & 25.0 & 19.4 \\\$ 153,100-\$ 233,350 & 29,752.50 & 28.0 & 22.4 \\\$ 233,350-\$ 416,700 & 52,222.50 & 33.0 & 27.1 \\\$ 416,700-\$ 470,700 & 112,728.00 & 35.0 & 28.0 \\\text { Over } \$ 470,700 & 131,628.00 & 39.6 & 39.6\end{array}$
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What is their average tax rate?
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• A) 22.28%
• B) 19.38%
• C) 22.95%
• D) 23.84%
• E) 16.71%

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Definitions:

Intuition

The ability to understand or know something immediately, based on feelings rather than facts or evidence.

Logical Reasoning

The process of using a structured, methodical approach to arrive at conclusions or solve problems based on given premises or facts.

Left Hemisphere

The hemisphere of the brain that is typically associated with analytical thought, language, logic, and sequential processing.

Planning

The process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.