A Company Pays Tax at a Rate of 15% on Its

question 38

Multiple Choice

A company pays tax at a rate of 15% on its first $50,000 of income.If it has $60,000 of taxable income and an average tax rate of 18%,what is the marginal tax rate on its last $10,000 of income?

• A) 15%
• B) 33%
• C) 18%
• D) 25%

---

Definitions:

Right Margins

The space on the right side of a page in a document where text is not printed.

Effective Writing

The skill of crafting written content in a clear, concise, and engaging manner that successfully conveys the intended message to the reader.

Vivid Adverbs

Descriptive words used to modify verbs, adjectives, or other adverbs, often enhancing the vividness or clarity of a sentence.

Extremely

An adverb used to emphasize the high degree or intensity of a characteristic, action, or condition.