Assume that the marginal tax rate is 10 percent for the first $10,000 of income, 20 percent for income between $10,000 and $40,000, and 30 percent for any income over $40,000. If Jerome has taxable income equal to $60,000 for the year, what is his tax bill?

A. $6,000.
B. $13,000.
C. $18,000.
D. $15,000.

ANSWER:

B. $13,000.