Question: Michelle earned $ 3 0 , 5 0 0 from her employer and an additional $ 9 , 5 0 0 from a mail order

Michelle earned $

30, 500

from her employer and an additional $

9, 500

from a mail order business she runs from her house in her spare time. After taking deductions and exemptions, Michelle finds out that she will pay taxes based on a

15 %

marginal tax rate. In Michelle's case, this implies that

A : the

15 %

tax rate will apply only to taxable income above a certain threshold.

B

: the marginal tax rate is lower than the average tax rate.

C: only her employment income will be taxed at

15 % .

D : her entire taxable income will be taxed at

15 % .

Michelle earned $30,500 from her employer and an additional $9,500 from

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