Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.2 Income Tax - Exercise Set 8.2 - Page 506: 11

Answer

$51906.5$

Work Step by Step

Using the table we get: tax liability on first $17400$: $17400\cdot0.1=1740$ tax liability on$17401$ to $70700$: $(70700-17400)\cdot0.15=7995$ tax liability on$70701$ to $142700$: $(142700-70700)\cdot0.25=18000$ tax liability on$142701$ to $217450$: $(217450-142700)\cdot0.28=20930$ tax liability on$217451$ to $250000$: $(250000-217450)\cdot0.33=10741.5$ Total tax liability: $1740+7995+18000+20930+10741.5=59406.5$ Total tax owed: total tax liability-tax credits= $59406.5-7500=51906.5$
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.