Leonardo, Who Is Married but Files Separately, Earns $80,000 of Taxable

Multiple Choice

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo earned an additional $30,000 of taxable income this year, what would be the marginal tax rate on the extra income for 2020? (Use tax rate schedule.) (Round your final answer to two decimal places.)

A) 22.00 percent
B) 18.81 percent
C) 24.00 percent
D) 23.62 percent
E) None of the choices are correct