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

question 206

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.
-Caitlin is single and earned wages of $32,988. She received $300 in interest from a savings account. She contributed $479 to a tax-deferred retirement plan. She had $530 in itemized deductions from
Charitable contributions. Calculate her gross income.

• A)$32,279
• B)$33,288
• C)$33,767
• D)$32,809

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Definitions:

Cluster

A grouping of similar items, individuals, or data points among a set of data.

Standard Error

Standard Error is the standard deviation of the sampling distribution of a statistic, often used to measure the accuracy with which a sample reflects a population.

Sample Size

The number of observations or elements selected from a population to be included in a sample.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, indicating how spread out the data points are.