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

question 22

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 file married filing jointly in 2020, what would be their average tax rate? (Use tax rate schedule.) (Round your final answer to two decimal places.)

• A)12.00 percent
• B)22.00 percent
• C)15.52 percent
• D)22.57 percent
• E)None of the choices are correct

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Definitions:

Down Payments

A down payment is the initial, upfront portion of the total amount due, often associated with the purchase of expensive items like a home or a car, which is not financed through a loan.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Investment Banks

Financial institutions that provide services such as underwriting, mergers and acquisitions, and advisory services to corporations and governments.

Lehman Brothers

A former global financial services firm that filed for bankruptcy in 2008, becoming a symbol of the largest bankruptcy in U.S. history and a catalyst for the global financial crisis.