Answer
Tax owed is \[\$6,030\].
Work Step by Step
In this case it is required to compute the tax owed by a single man with a taxable income of \[\$40,000\], the percentage deducted on the first \[\$8,700\] is \[10%\]
\[\begin{align}
& \text{Tax}\ \text{liability}\ \text{on}\ \text{first}\ \$8,700=\text{Rate}\\times\\text{Income}\\&\text{=0}.10\times\$8,700\\&=\$870\\\end{align}\]
And till\[\$35,350\], the tax is\[15%\]. So, on \[35,350-8,700=26,650\].
\[\begin{align}
& \text{Tax}\ \text{liability}\ \text{on 26,650}=\text{Rate}\ \times \ \text{Income} \\
& =\text{ }0.15\times \$26,650\\&=\$3,997.5\end{align}\]
Now on the remaining \[40,000-35,350=4650\], the tax will be \[25%\].
\[\begin{align}
& \text{Tax}\ \text{liability}\ \text{on 4,650}=\text{Rate}\ \times \ \text{Income} \\
& =\text{ }0.25\times \$4,650\\&=\$1,162.5\end{align}\]
The sum of tax liabilities will be the total tax owed by the person.
\[\begin{align}
& \text{Total}\ \text{Tax}\ \text{owed}=\$870+\$3,997.5+\$1,162.5\\&=\$6030\end{align}\]
