The marginal tax rates are given in the following table.
Taxable income
$0-10,000
$10,001-30,000
$30,001-85,000
$85,001-186,000
$186,001-405,100
Over $405,101
Tax rate
10%
15%
25%
28%
33%
40%
Kara has an annual income of $325,000. What is Kara's marginal tax rate, amount of
tax paid, and the average tax rate?
33%, $91,900, 28.3% respectively
45%, $120,750, 39.6% respectively
33%, $160,366, 40% respectively