Government G levies an income tax with the following rate structure:

Percentage Rate			Bracket
	6	%	Income from 0 to $30,000
	10		Income from $30,001 to $70,000
	20		Income from $70,001 to $200,000
	28		Income in excess of $200,000

Taxpayer O earns $58,500 annually during years 1 through 10. Taxpayer P earns $21,500 annually during years 1 through 5 and $95,500 annually during years 6 through 10. Assume the tax rate bracket has not changed.

1. How much total income does each taxpayer earn over the 10-year period?
2. Compute each taxpayers average tax rate for the 10-year period.

• Required A

How much total income does each taxpayer earn over the 10-year period?

• Required B

Compute each taxpayers average tax rate for the 10-year period. (Round your answers to 1 decimal place.)

	Average Tax Rate
Taxpayer O		%
Taxpayer P		%

	Total Income
Taxpayer O
Taxpayer P