In a hypothetical economy, Kenji earns $35,000, Lucia earns $70,000, and Paolo earns $105,000 in annual...

 

Transcribed Image Text:

In a hypothetical economy, Kenji earns $35,000, Lucia earns $70,000, and Paolo earns $105,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Kenji, who earns $35,000, owes $7,350 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Kenji, Lucia, and Paolo with an annual income of $35,000, $70,000, and $105,000, respectively. Taxable Income Kenji Lucia Paolo Taxable Income Tax Liability Average Tax Rate (Dollars) (Percent) (Dollars) 35,000 7,350 70,000 14,700 105,000 22,050 The income tax system for this country is In a hypothetical economy, Kenji earns $35,000, Lucia earns $70,000, and Paolo earns $105,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Kenji, who earns $35,000, owes $7,350 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Kenji, Lucia, and Paolo with an annual income of $35,000, $70,000, and $105,000, respectively. Taxable Income Kenji Lucia Paolo Taxable Income Tax Liability Average Tax Rate (Dollars) (Percent) (Dollars) 35,000 7,350 70,000 14,700 105,000 22,050 The income tax system for this country is

Answer rating: 100% (QA)

To compute the average tax rate we need to divide the tax liability ... View the full answer