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

question 26

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 earned an additional $30,000 of taxable income this year,what would be the marginal tax rate (rounded) on the extra income for year 2018? (Use tax rate schedule)

• A)22.00%
• B)18.81%
• C)24.00%
• D)23.83%
• E)None of the choices are correct.