The tax rates for a particular year are shown below: Taxable Income Tax Rate $0 – 50,000 15 % 50,001 – 75,000 25 % 75,001 – 100,000 34 % 100,001 – 335,000 39 % What is the average tax rate for a firm with taxable income of $130,513?

The average tax rate is 26.17%

Explanation:

The computation of the average tax rate having the taxable income is $130,513 is shown below:

$50,000 × 0.15 = $7,500

$25,000 × 0.25 = $6,250

$25,000 × 0.34 = $8,500

$30,513 × 0.39 = $11,900.07

Tax amount is $34,150.07

Now the average tax rate is

= Tax amount ÷ taxable income × 100

= $34,150.07 ÷ $130,513 × 100

= 26.17%

Hence, the average tax rate is 26.17%

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.