Figure: US

question 2

Multiple Choice

Figure: U.S. Marginal and Average Tax Rates Reference: Ref 17-1 (Figure: U.S. Marginal and Average Tax Rates) According to the figure, an individual who earns $150,000 a year has an approximate average tax rate of

• A) 28 percent.
• B) 25 percent.
• C) 21 percent.
• D) 15 percent.

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Definitions:

Value Basis

The method or the initial cost of an investment used for financial reporting and tax purposes.

Unprocessed Wheat

Raw wheat that has not undergone any cleaning, milling, or processing steps.

Granary

A storage facility for threshed grain or animal feed, typically used by agricultural operations.

Sales Revenues

The income received from selling goods or services over a period of time.