Marginal Tax Rates from Income Graph Steps:

• Identify tax paid on first $10,000: if no deduction shown, tax is$0, so rate is 0%.
• For $10,000–$20,000 bracket: calculate tax as difference in total tax at $20,000 minus tax at$10,000, divided by $10,000 income in bracket.
• Apply formula: marginal rate = (additional tax / additional income) × 100%.
• Verify third bracket incomplete, but options focus on first two rates.

Why B is correct:

• Matches 0% (no tax on initial $10,000) and 25$2,500 tax on next $10,000, per standard progressive tax calculation).

Why the others are wrong:

• A: Understates second bracket rate (actual 25%, not 12%).
• C: Incorrectly assumes 1% on first bracket (tax-free, so 0%).
• D: Incomplete option provides no rates.

Final answer: B