question archive Kelly's income is $60,000

Kelly's income is $60,000

Subject:AccountingPrice:2.86 Bought3

Kelly's income is $60,000. Taxpayers are allowed a deduction of $13,000 from their total income for the purposes of computing taxable income.  The tax rate on taxable income is 20%.

What is Kelly's average tax rate?

 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Kelly's total income = 60000

Kelly's taxable income = 60000-13000 = 47000

Tax paid by Kelly =20%*47000 = 9400

Thus his average tax rate =( total tax paid/total income )*100

= (9400/60000)*100

= 0.156667*100=15.6667%

= 15.67%

Sitejabber (5.0)

Merchant Circle (4.8)

Trustpilot (4.6)

Study Help Me (4.9)

Related Questions