To determine the total amount Joe owes in taxes based on his taxable income of \[tex]$67,825, we will use the given tax schedule.
Let's break down Joe's taxable income as it applies to the tax brackets:
1. The first \$[/tex]7,825 is taxed at 10%.
- [tex]\(\text{Tax for this bracket} = \$7,825 \times 0.10 = \$782.50\)[/tex]
2. The next amount from \[tex]$7,825 to \$[/tex]31,850 is taxed at 15%.
- The taxable amount in this bracket is [tex]\(\$31,850 - \$7,825 = \$24,025\)[/tex]
- [tex]\(\text{Tax for this bracket} = \$24,025 \times 0.15 = \$3,603.75\)[/tex]
3. The remaining amount from \[tex]$31,850 to \$[/tex]67,825 falls into the third bracket.
- The taxable amount in this bracket is [tex]\(\$67,825 - \$31,850 = \$35,975\)[/tex]
- [tex]\(\text{Tax for this bracket} = \$35,975 \times 0.25 = \$8,993.75\)[/tex]
We now sum up the taxes from all brackets to find the total tax Joe owes:
[tex]\[
\text{Total Tax} = \$782.50 + \$3,603.75 + \$8,993.75
\][/tex]
[tex]\[
\text{Total Tax} = \$13,380.00
\][/tex]
Thus, the total amount Joe owes in taxes is [tex]\(\$13,380.00\)[/tex].
The correct answer is:
C. \$13,380.00
