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To determine the effective tax rate for a taxable income of [tex]$95,600, let's follow the steps to compute the tax owed and the effective tax rate.
1. Identify the Tax Bracket:
- Taxable income: $[/tex]95,600
- From the given table, the [tex]$95,600 falls within the tax bracket of $[/tex]89,076 to [tex]$170,050 which has a marginal tax rate of 24%. 2. Calculate the Tax Owed: - The formula for this tax bracket is \(0.24x - 6104.50\). - Plugging in the taxable income: \[ Tax\ Owed = 0.24 \times 95,600 - 6,104.50 = 22,944 - 6,104.50 = 16,839.50 \] 3. Compute the Effective Tax Rate: - Effective Tax Rate \(= \left(\frac{Tax\ Owed}{Taxable\ Income}\right) \times 100\%\) - Using the values: \[ Effective Tax Rate = \left(\frac{16,839.50}{95,600}\right) \times 100\% \approx 17.61\% \] So, the effective tax rate for a taxable income of $[/tex]95,600 is approximately 17.61%, rounded to the nearest hundredth. Hence, the correct answer is:
- [tex]$17.61 \%$[/tex]
- From the given table, the [tex]$95,600 falls within the tax bracket of $[/tex]89,076 to [tex]$170,050 which has a marginal tax rate of 24%. 2. Calculate the Tax Owed: - The formula for this tax bracket is \(0.24x - 6104.50\). - Plugging in the taxable income: \[ Tax\ Owed = 0.24 \times 95,600 - 6,104.50 = 22,944 - 6,104.50 = 16,839.50 \] 3. Compute the Effective Tax Rate: - Effective Tax Rate \(= \left(\frac{Tax\ Owed}{Taxable\ Income}\right) \times 100\%\) - Using the values: \[ Effective Tax Rate = \left(\frac{16,839.50}{95,600}\right) \times 100\% \approx 17.61\% \] So, the effective tax rate for a taxable income of $[/tex]95,600 is approximately 17.61%, rounded to the nearest hundredth. Hence, the correct answer is:
- [tex]$17.61 \%$[/tex]
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