As of 2015, farms were taxed at 10 percent for income up to $42,000; at 23 percent for income ranging from $42,000 to $62,000; at 30 percent for taxable income $92,000 to $122,000; at 40 percent for income from $92,000 to $122,000, and so on.

Suppose that you have revenues of $174,900 and operating expense of $55,700.

(i) What is the amount of the taxable income?

a.	$230,600		b.	$119,200
c.	$83,440		d.	$174,900

e. None of the answers are correct

(ii) How much tax is paid on the first $42,000 of the taxable income?

a. $4,200 b. $9,000

c. $ 4,600 d. $460

e. None of the answers are correct.

(iii) How much tax is paid on the first $62,000 of the taxable income?

a. $4,600 b. $14,260

c. $8,800 d. $6,200

e. None of the answers are correct

(iv) How much tax is paid on the total taxable income?

a.$119,200 b. $28,680

c. $174,900 d. $10,880

e. None of the answers are correct

(v) What is the average tax rate?

a.	12.44%		b.	10.18%
c.	24.06%		d.	34.37%

e. None of the answers are correct

(vi) What is the marginal tax rate?

a. 30% b. 10%

c. 23% d. 40%

e. None of the answers are correct