Katie pays $10,000 in tax-deductible property taxes. Katie’s marginal tax rate is 32%, average tax rate is 28%, and effective tax rate is 25%. Katie's tax savings from paying the property tax is:

A. $1,600.
B. $2,500.
C. $2,800.
D. $3,200.
E. $10,000.


Answer: D

Business

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