Reference no: EM132490889

Question - Assume that Romeo and Juilet, a married couple, have taxable income of $100,000 which is taxed according to the following table below:

Taxable Income Tax Rate

0 to $30,000 10%

$30,001 to $60,000 20%

$60,001 to $90,000 30%

$90,001 to $120,000 35%

Required - What is Romeo and Juilet's marginal tax rate and their average tax rate?

A. Marginal Tax Rate = 35%, Average Tax Rate = 21.5%

B. Marginal Tax Rate = 35%, Average Tax Rate = 23.75%

C. Marginal Tax Rate = 21.5%, Average Tax Rate = 35%

D. Marginal Tax Rate = 23.75%, Average Tax Rate = 21.5%

E. Marginal Tax Rate = 35%, Average Tax Rate = 35%