Answer
Tax owed is \[\$6,530\].
Work Step by Step
In this case, it is required to compute the tax owed by a single man with a taxable income of \[\$42,000\], the percentage deducted on the first \[\$8,700\] is \[10%\].
Tax liability on first $8,700=Rate *Income=0.8*$8,700=$870
And, from \[\$8701\]to \[\$35,350\], the percentage is \[15%\]. So, \[35,350-8700=26,650\]
\[\begin{align}
& \text{Tax}\ \text{liability}\ \text{on 26,650}=\text{Rate}\ \times \ \text{Income} \\
& =\text{ }0.15\times \$26,650\\&=\$3,997.5\end{align}\]
Now on the remaining \[42,000-35,350=6650\], the tax will be \[25%\].
\[\begin{align}
& \text{Tax}\ \text{liability}\ \text{on 6,650}=\text{Rate}\ \times \ \text{Income} \\
& =\text{ }0.25\times \$6,650\\&=\$1,662.5\end{align}\]
The sum of tax liabilities will be the total tax owed by the person.
\[\begin{align}
& \text{Total}\ \text{Tax}\ \text{owed}=\ \$870+\$3,997.5+\$1662.5\\&=\$6,530\end{align}\]
