Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$

question 225

Multiple Choice

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**


- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$ , which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$ .
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Kevin is married, but he and his wife filed separately. His gross salary was $37,967, and he earned $448 in interest. He had $1141 in itemized deductions and claimed three exemptions for himself
And two children. Find his taxable income.

• A)$27,274
• B)$28,415
• C)$19,474
• D)$20,615

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Definitions:

Capacity Utilization Rate

The percentage of a firm's total possible production capacity that is actually being used over a given period.

Global Economy

The interconnected networks of economic activities, trade, and investment transcending national borders, encompassing the production, distribution, and consumption of goods and services worldwide.

Importance

The state or fact of being of great significance or value.

Productive Efficiency

A situation where an economy or a production process is not able to produce more of one good without reducing the production of another good, operating on its production possibilities frontier.