An Average Tax Rate Is Calculated as

question 255

Multiple Choice

An average tax rate is calculated as

• A)total taxable income × taxes paid.
• B)total taxable income ÷ taxes paid.
• C)taxes paid ÷ total taxable income.
• D)(total taxable income - taxes paid)÷ taxable income.

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Definitions:

Ounce

An ounce is a unit of weight commonly used in the United States and Britain, equivalent to 1/16 of a pound or about 28.35 grams.

Pounds

A unit of weight commonly used in the United States, equivalent to 0.453592 kilograms, or a British currency (GBP).

Hedged Delivery

A strategy used in trading and finance to minimize risk by taking compensating positions in related securities or commodities.

Futures Contracts

Legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.