Suppose You Are Offered a $5,000 Raise at Work

Multiple Choice

Suppose you are offered a $5,000 raise at work.Your current income tax rate is 25 percent.Your marginal income tax rate is 28 percent.Your average tax rate is 20 percent.The additional income tax you owe to the federal government (assuming you stay in the same rate bracket) if you accept the job will be

A) $1,250.
B) $1,400.
C) $1,000.
D) $250.
E) $150.