Jennifer and Paul, who file a joint return, have taxable income of $94,625 and the following tax liability:

$18,650 × 10% =                                $ 1,865.00

($75,900 − $18,650) × 15% =                8,587.50

($94,625 − $75,900) × 25% =               4,681.25

            Total tax liability                     $15,133.75

Their average tax rate is:

a. 10%.

b. 15%.

c. 16%.

d. 25%.