Asked by Justin Robbins on Jul 05, 2024
Verified
The following tax schedule applies to an individual. Her taxable income is $40,000. How much is her total tax? 10% of the first $10,000
15% of the next $15,000
25% of the next $10,000
35% of the next $20,000
A) $8,500
B) $10,000
C) $7,500
D) $7,000
Tax Schedule
A detailed plan or system for calculating tax liabilities based on income, deductions, and credits according to relevant laws and regulations.
Taxable Income
The amount of income used to calculate how much tax an individual or a company owes to the government.
Total Tax
The combined amount of all taxes owed by an individual or corporation in a given year, including federal, state, and local taxes.
- Apprehend the aspects of financial statements and their value.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
C
Explanation :
First compute the tax for each tier of the income:
- 10% of the first $10,000 = $1,000
- 15% of the next $15,000 = $2,250
- 25% of the next $10,000 = $2,500
- 35% of the remaining $5,000 = $1,750
Total tax = $1,000 + $2,250 + $2,500 + $1,750 = $7,500.
Therefore, the correct choice is (C).
- 10% of the first $10,000 = $1,000
- 15% of the next $15,000 = $2,250
- 25% of the next $10,000 = $2,500
- 35% of the remaining $5,000 = $1,750
Total tax = $1,000 + $2,250 + $2,500 + $1,750 = $7,500.
Therefore, the correct choice is (C).
Learning Objectives
- Apprehend the aspects of financial statements and their value.