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

question 80

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 2013?

• A)27.75%
• B)17.50%
• C)25.00%
• D)28.00%
• E)None of these

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Definitions:

Delivery Truck

A vehicle designed specifically for transporting cargo, particularly goods to be delivered to consumers or businesses.

Litres of Fuel

A measure of volume used to quantify fuel use, typically in vehicles or machinery.

Fixed Cost

Refers to expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance costs.

Rent of Factory

The periodic payment made for the use of a factory facility or space for manufacturing or production processes.