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Suppose that Person A has a yearly gross income of $84,000. His standard deduction is $13,500, and he has no other adjustments, deductions, or credits.
Suppose that Person A has a yearly gross income of $84,000. His standard deduction is $13,500, and he has no other adjustments, deductions, or credits. His tax rate on the first $10,000 of taxable income is 10%. His tax rate on the next $20,000 of taxable income is 20%. His tax rate on the next $30,000 of taxable income is 30%, and his tax rate on the next $40,000 of taxable income is 40%.
A. What is Person As taxable income?
B. What is Person As average tax rate?
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