During the current year, K's taxable income is $89,000 and he pays income tax of $17,995. K is single, has no dependents, and does not itemize his deductions. J, who files in exactly the same manner as K, has taxable income of $90,000 and pays income tax of $18,245.

If required round your answers to two decimal places.

1. What is K's average tax rate? %

2. What is J's average tax rate? %

3. If Ks income increased to the same amount as J, what would Ks marginal tax rate be (i.e. what tax rate is he paying on the additional $1,000 of income)? %