Katarina,a Single Taxpayer,has Total Income from All Sources of $100,000

question 13

Multiple Choice

Katarina,a single taxpayer,has total income from all sources of $100,000 for 2017.Her taxable income after taking into consideration $25,000 in deductions and $10,000 in exclusions is $65,000.Katarina's tax liability is $11,989.What are Katarina's marginal,average,and effective tax rates?

• A)28% marginal;18.4% average;18.4% effective.
• B)25% marginal;16.0% average;16.0% effective.
• C)25% marginal;16.0% average;18.5% effective.
• D)25% marginal;18.4% average;16.0% effective.
• E)28% marginal;16.0% average;18.4% effective.

---

Definitions:

Rights Offering

A financial mechanism by which a company offers its existing shareholders the opportunity to purchase additional shares directly, often at a discount.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock, typically lower than the current market price.

Market Price

The current price at which an asset or service can be bought or sold in a given market.