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

question 110

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.
-Bill earned wages of $47,227, received $1837 in interest from a savings account, and contributed $ 3010 to a tax deferred retirement plan. He was entitled to a personal exemption of $3900 and had
Deductions totaling $7719. Find his adjusted gross income.

• A)$52,074
• B)$34,435
• C)$46,054
• D)$59,793

---

Definitions:

Negative Value

A negative value represents a number less than zero, often indicating a deficit or reduction in mathematical and statistical contexts.

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Normal Deviate

Another term for Z-score, highlighting its role in standard normal distribution.