Assume a Company Pays Tax at a Rate of 15

question 4

Multiple Choice

Assume a company pays tax at a rate of 15% on its first $50,000 of income.Any income above $50,000 is taxed at 25%.If a company has $75,000 of taxable income,which of the following statements is correct?

• A) Its marginal tax rate is 15%.
• B) Its average tax rate is 25%.
• C) Its marginal tax rate is 18.33%.
• D) Its average tax rate is 18.33%.

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Definitions:

Implications

The possible effects, outcomes, or repercussions that may result from a specific action, decision, or event.

Balance

The state where different elements are in the correct proportions or positions; in a work-life context, it often refers to the equilibrium between professional and personal life.

Hierarchy of Importance

A ranking system that prioritizes tasks, goals, or values based on their significance or urgency.

Motivation Theories

Psychological theories that aim to explain what drives individuals to initiate, direct, and persist in behaviors aimed at achieving a goal.