To determine which worker had the lowest taxable income last year, we'll follow a systematic approach. First, we'll compute the taxable income for each worker by using their gross income, standard deduction, and exemptions. Each exemption is valued at [tex]$3650.
Here is the step-by-step process for each worker:
1. Esther
- Gross income: \$[/tex]45,788
- Standard deduction: \[tex]$5,700
- Number of exemptions: 2
- Value of exemptions: 2 * \$[/tex]3,650 = \[tex]$7,300
Taxable income = Gross income - Standard deduction - Value of exemptions
\[
= 45788 - 5700 - 7300 = 32,788 \text{ USD}
\]
2. Frank
- Gross income: \$[/tex]47,612
- Standard deduction: \[tex]$8,350
- Number of exemptions: 2
- Value of exemptions: 2 * \$[/tex]3,650 = \[tex]$7,300
Taxable income = Gross income - Standard deduction - Value of exemptions
\[
= 47612 - 8350 - 7300 = 31,962 \text{ USD}
\]
3. Macy
- Gross income: \$[/tex]41,967
- Standard deduction: \[tex]$5,700
- Number of exemptions: 1
- Value of exemptions: 1 * \$[/tex]3,650 = \[tex]$3,650
Taxable income = Gross income - Standard deduction - Value of exemptions
\[
= 41967 - 5700 - 3650 = 32,617 \text{ USD}
\]
4. Penny
- Gross income: \$[/tex]52,785
- Standard deduction: \[tex]$8,350
- Number of exemptions: 3
- Value of exemptions: 3 * \$[/tex]3,650 = \$10,950
Taxable income = Gross income - Standard deduction - Value of exemptions
[tex]\[
= 52785 - 8350 - 10950 = 33,485 \text{ USD}
\][/tex]
To determine which worker had the lowest taxable income, we compare the final amounts calculated:
- Esther: 32,788 USD
- Frank: 31,962 USD
- Macy: 32,617 USD
- Penny: 33,485 USD
The lowest taxable income is 31,962 USD, which belongs to Frank. Therefore, the worker with the lowest taxable income last year is:
Answer: A. Frank
