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

question 55

Multiple Choice

Katarina,a single taxpayer,has total income from all sources of $100,000 for 2016.Her taxable income after taking into consideration $25,000 in deductions and $10,000 in exclusions is $65,000.Katarina's tax liability is $12,021.What are Katarina's marginal,average,and effective tax rates?

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

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Definitions:

Federal Wage-Hour Requirements

Regulations set by the government that establish minimum wage, overtime pay eligibility, and other standards for workers.

Interstate Commerce

Economic activities or transactions that cross state borders or affect more than one state, subject to federal regulation.

Overtime Pay

Additional compensation required by law or agreement for hours worked beyond the standard workweek.

State Law

Legislation that is enacted by a state's legislative body and applicable within that state, governing matters not reserved to the federal government.