Assume the marginal tax rate is 12% for the first $40,000 of taxable income

4. Assume the marginal tax rate is 12% for the first $40,000 of taxable income, 28% for taxable income from $40,001 to $100,000, and 30% for taxable income above $100,000. If Mr. Smith had taxable income of $120,000, how much tax does he owe? 

A. $27,600

B. $33,600

C. $34,000

D. $36,000

In question 4, what is Mr. Smith's nominal tax rate?

A. 12%

B. 23%

C. 28%

D. 30%