Answer
$3270
Work Step by Step
It is required to compute the Income-tax owed by a person which can be done with the below-mentioned steps:
Step 1: Compute the adjusted gross profit as follows:
\[\begin{align}
& \text{Adjusted gross profit}=\$36,500-\$2,000\\&=\$34,500\end{align}\]
Step 2: Compute the taxable income as follows:
\[\begin{align}
& \text{Taxable income}=\$34,500-\left(\$3,800+\$6,000\right)\\&=\$24,700\end{align}\]
Step 3: Compute the taxable income as follows:
\[\begin{align}
& \text{Tax computation}=\$8,700\times0.1+\left(\$24,700-\$8,700\right)\times0.15\\&=\$870+\left(\$16,000\times0.15\right)\\&=\$870+\$2,400\end{align}\]
\[=\$3,270\]
Step 4: Compute the income tax as follows:
\[\begin{align}
& \text{Income tax}=\$3,270-\$0\\&=\$3,270\end{align}\]
Hence, the income tax owed by the single person is\[\$3,270\].
