Leonardo, Who Is Married but Files Separately, Earns $80,400 of Taxable

Multiple Choice

Leonardo, who is married but files separately, earns $80,400 of taxable income. He also has $15,400 in city of Tulsa bonds. His wife, Theresa, earns $50,400 of taxable income.If Leonardo earned an additional $30,400 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) 22.03 percent
B) 18.84 percent
C) 24.03 percent
D) 23.66 percent
E) None of the choices are correct