Suppose Ms

question 71

Multiple Choice

Suppose Ms.Sanchez has a total income of $200,000,has a taxable income of $120,000,and pays $40,000 in taxes.Considering the information,what is Ms.Sanchez's nominal tax rate?

• A)20.0 percent.
• B)18.5 percent.
• C)33.3 percent.
• D)60.0 percent.

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Definitions:

Stocks

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.

Bonds

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays interest over time and returns the principal at maturity.

Forgoing Benefits

The benefits that are lost when choosing one alternative over another; also known as opportunity cost.

Present Benefits

Advantages or positive outcomes that are received or enjoyed currently, as opposed to in the future.