Scenario 12-4 A Taxpayer Faces the Following Tax Rates on Her Income

Multiple Choice

Scenario 12-4
A taxpayer faces the following tax rates on her income:
20 percent of the first $40,000 of her income;
30 percent of all her income above $40,000.
-Refer to Scenario 12-4. At what level of income would the taxpayer's marginal tax rate be 30 percent and her average tax rate be 25 percent?

A) $42,000
B) $57,000
C) $60,000
D) $80,000