I have a question on effective or "average" interest rate. Here is an example:

Becker and Company had $150,000 in EBT. Using the schedule below, what was their effective tax rate? Before-Tax Income (EBT) Tax Rate

$0 - $50,000 15% $50,001 - $75,000 25% $75,001 - $100,000 34% $100,001 - $335,000 39% $335,001 - $10,000,000 34 $10,000,001 - $15,000,000 35% $15,000,001 - $18,333,333 38% Over $18,333,333 35%

I know the answer is broken up like this:

$50,000 x 15% = $7,500 $25,000 x 25% = $6,250 $25,000 x 34% = $8,500 $50,000 x 39% = $19,500 Total Tax paid = $41,750 $41,750/150,000 = 27.83% or 28% tax

But where do you get the information on how to break up the EBT? Why is it 50K, then 25k, 25k, then 50K?