Q:

Mary Hernandez earned $43,000 in taxable income. She figured her tax from the single taxpayer table above. $0 $7,825 10% of the amount over $0$7,825 $31,850 $788 + 15% of the amount over $7,825$31,850 $77,100 $4,386 + 25% of the amount over $31,850$77,100 $160,850 $15,699 + 28% of the amount over $77,100$160,850 $349,700 $39,149 + 33% of the amount over $160,850$349,700 And Over $101,469 + 35% of the amount over $349,7001. Find her earned income level.2. Entered the base amount. = $3. Found the amount over $ = $4. Multiplied line 3 by 25% = $5. Added Lines 2 and 4

Accepted Solution

A:
As $43000 lies between $31,850 and $77,100, so  Mary's income falls in tax bracket 3.so, the tax she has to pay: 4386 + 25% of (43000-4386)= 4386 + 9653.5= $14039.5