Question
The state of Montana levies an income tax with the following rate structure. Rate Income bracket 5% $-0- to $50,000 10% $50,001 to $150,000 20%
The state of Montana levies an income tax with the following rate structure.
| Rate | Income bracket |
| 5% | $-0- to $50,000 |
| 10% | $50,001 to $150,000 |
| 20% | $150,001 and above |
A. Mrs. Smith's annual income is $120,000. Compute her tax, her average tax rate, and her marginal tax rate.
B. Mr. Rose's annual income is $230,000. Compute his tax, his average tax rate, and his marginal tax rate.
C. Does Montana have a proportionate, progressive, or regressive tax rate structure?
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Accounting For Non Accounting Students
Authors: John R. Dyson
7th Edition
0273709224, 9780273709220
