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 $68,500 annually during years 1 through 10. Taxpayer P earns $26,500 annually during years 1 through 5 and $110,500 annually during years 6 through 10. Assume the tax rate bracket has not changed.

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

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

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

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

	Total Income
Taxpayer O	$13,800selected answer incorrect
Taxpayer P	$56,860selected answer incorrect

	Average Tax Rate
Taxpayer O	20.0selected answer incorrect	%
Taxpayer P	28.0selected answer incorrect	%