Leonardo, Who Is Married but Files Separately, Earns $80,000 of Taxable

question 101

Multiple Choice

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo and his wife are married filing jointly in 2020, what is Leonardo and Theresa's effective tax rate for 2020? (Use tax rate schedule.) (Round your final answer to two decimal places.)

• A)12.00 percent
• B)15.63 percent
• C)20.23 percent
• D)22.00 percent
• E)None of the choices are correct

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Definitions:

Highly Competitive

A market structure characterized by a large number of small firms, free entry and exit, and a high level of competition where no single firm can significantly influence market prices.

Simple Indicator

A quantitative measure that can be used to gauge or describe the performance or status of a particular phenomenon.

Sellers

Individuals or entities that offer goods or services for sale to buyers in the market.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit which leads to firms selling at the market price.