Asked by Vince Carrola on Apr 23, 2024
Verified
Janet earned $78,000 last year. Tax rate earned on the first $20,000 is 15%; 25% on the next $25,000 and 30% for the remainder of income. What was the amount of tax paid?
A) 18,200
B) 19,150
C) 20,250
D) 22,000
E) 22,500
Tax Rate
The percentage at which an individual or corporation is taxed.
Income Tax
A tax levied by a government directly on individuals' or organizations' income.
- Investigate the composition of graduated taxation and reward structures.
Verified Answer
LS
Lucas Silvestre5 days ago
Final Answer :
B
Explanation :
Janet's tax is calculated as follows: 15% on the first $20,000 = $3,000; 25% on the next $25,000 = $6,250; and 30% on the remaining $33,000 ($78,000 - $45,000) = $9,900. Adding these amounts gives a total tax of $19,150.
Learning Objectives
- Investigate the composition of graduated taxation and reward structures.