Which of the Following Statements Is Correct for an Individual

question 85

Multiple Choice

Which of the following statements is correct for an individual with a net income of $50,000.00,a tax liability of $10,704.50,and a 28% marginal tax rate?

• A) The average tax rate is 17.63%.
• B) The average tax rate is 21.41%.
• C) The average tax rate is 28.00%.
• D)The average tax rate is unknown but greater than the marginal tax rate.

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Definitions:

Inventory Purposes

Refers to the reasons a company maintains inventory, which typically include meeting customer demand, ensuring production continuity, and managing supply chain risks.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Fixed Assets

Long-term tangible assets used in the operations of a business and not expected to be converted to cash in the near term.

Times Interest Earned

Times Interest Earned is a financial ratio that measures a company's ability to meet its debt obligations based on its current earnings before interest and taxes (EBIT).