To determine the tax payable on a taxable income of [tex]$64,000, we need to calculate the tax for each applicable tax bracket. Let's break down each part.
1. Taxable Income from $[/tex]0 to [tex]$9,875:
- Tax Rate: $[/tex]10\%[tex]$
- Calculation: $[/tex]0.10 \times \[tex]$9,875$[/tex]
- Result: [tex]$\$[/tex]987.50[tex]$
2. Taxable Income from $[/tex]9,876 to [tex]$40,125:
- Tax Rate: $[/tex]12\%[tex]$
- Calculation: $[/tex]0.12 \times (\[tex]$40,125 - \$[/tex]9,875)[tex]$
- Result: $[/tex]0.12 \times \[tex]$30,250 = \$[/tex]3,630.00[tex]$
3. Taxable Income from $[/tex]40,126 to [tex]$64,000:
- Tax Rate: $[/tex]22\%[tex]$
- Calculation: $[/tex]0.22 \times (\[tex]$64,000 - \$[/tex]40,125)[tex]$
- Result: $[/tex]0.22 \times \[tex]$23,875 = \$[/tex]5,252.50[tex]$
Summing these amounts together gives the total tax payable:
- $[/tex]\[tex]$987.50 + \$[/tex]3,630.00 + \[tex]$5,252.50 = \$[/tex]9,870.00[tex]$
Based on the provided options, let’s examine the calculations:
A. $[/tex]10\% \times \[tex]$9,875 + 12\% \times (\$[/tex]40,125 - \[tex]$9,875) + 22\% \times (\$[/tex]85,525 - \[tex]$64,000)$[/tex]
- This expression calculates the taxes for the first two brackets but incorrectly uses an upper bound of [tex]$85,525$[/tex] for the third bracket, which is not related to this problem.
B. [tex]$10\% \times \$[/tex]9,875 + 12\% \times (\[tex]$40,125 - \$[/tex]9,875) + 22\% \times (\[tex]$64,000 - \$[/tex]40,125)[tex]$
- This expression correctly calculates the taxes for all three brackets.
C. $[/tex]22\% \times (\[tex]$85,525 - \$[/tex]64,000)[tex]$
- This expression only calculates the tax for an incorrect single bracket range.
D. $[/tex]22\% \times (\[tex]$64,000 - \$[/tex]40,125)[tex]$
- This expression only calculates the tax for the taxable income over $[/tex]40,125[tex]$ and neglects the lower brackets.
Therefore, the correct calculation is presented in option B:
\[ 10\% \times \$[/tex]9,875 + 12\% \times (\[tex]$40,125 - \$[/tex]9,875) + 22\% \times (\[tex]$64,000 - \$[/tex]40,125) \]
Thus, the correct answer is:
[tex]\[ \boxed{B} \][/tex]
