Assume that the marginal tax rate is as follows:

10% for $0-$10,000

15% for $10,000.01-$25,000

20% for $25,000.01-$50,000

25% for $50,000.01 or more

What would you expect the tax to be if a person's taxable income is $11,000.

a)

$1,000.15

b)

$1,150.00

c)

$1,015.00

d)

$15.00

e)

$1,001.50

f)

$1,000.00