Jennings, Inc. has a tax liability of $170,000 on pretax income of $500,000. What is the average tax rate for Jennings, Inc.?
A. 34 percent
B. 46 percent
C. 25 percent
D. 40 percent
Answer:A
Jennings, Inc. has a tax liability of $170,000 on pretax income of $500,000. What is the average tax rate for Jennings, Inc.?
A. 34 percent B. 46 percent C. 25 percent D. 40 percent