Arthur’s yearly taxable income totals $116,600, and he pays $30,910.66 in federal income tax every year. Approximately what is Arthur’s net federal income tax rate?
Answer
A
20.5%
B
12.7%
C
37.7%
D
26.5%
Explanation
Divide Arthur’s federal income tax by his taxable income: $30,910.66 ÷ $116,600 ≈ 0.2651. Converting to a percentage gives about 26.5%, so the answer is 26.5%.
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