Answered

Find accurate and reliable answers to your questions on IDNLearn.com. Get timely and accurate answers to your questions from our dedicated community of experts who are here to help you.

Question 1 (Multiple Choice, Worth 3 points)

The piecewise function represents the amount of taxes owed, [tex]f(x)[/tex], as a function of the taxable income, [tex]x[/tex]. Use the marginal tax rate chart or the piecewise function to answer the question.

Marginal Tax Rate Chart

\begin{tabular}{|c|c|}
\hline Tax Bracket & Marginal Tax Rate \\
\hline \[tex]$0 - \$[/tex]10,275 & 10\% \\
\hline \[tex]$10,276 - \$[/tex]41,175 & 12\% \\
\hline \[tex]$41,176 - \$[/tex]89,075 & 22\% \\
\hline \[tex]$89,076 - \$[/tex]170,050 & 24\% \\
\hline \[tex]$170,051 - \$[/tex]215,950 & 32\% \\
\hline \[tex]$215,951 - \$[/tex]539,900 & 35\% \\
\hline >\$539,901 & 37\% \\
\hline
\end{tabular}

Piecewise Function:
\[
f(x) = \left\{
\begin{array}{l l}
0.10x & \text{if } 0 \leq x \leq 10,275 \\
0.12x - 205.50 & \text{if } 10,276 \leq x \leq 41,175 \\
0.22x - 4,323.00 & \text{if } 41,176 \leq x \leq 89,075 \\
0.24x - 6,104.50 & \text{if } 89,076 \leq x \leq 170,050 \\
0.32x - 19,708.50 & \text{if } 170,051 \leq x \leq 215,950 \\
0.35x - 26,187.00 & \text{if } 215,951 \leq x \leq 539,900 \\
0.37x - 36,985.00 & \text{if } x \geq 539,901 \\
\end{array}
\right.
\]

Determine the effective tax rate for a taxable income of [tex]\$95,600[/tex]. Round the final answer to the nearest hundredth.

A. 17.00%
B. 17.61%
C. 22.70%
D. 24.00%

Sagot :

GinnyAnsweridn
To determine the effective tax rate for a taxable income of [tex]$95,600, let's follow the steps to compute the tax owed and the effective tax rate. 1. Identify the Tax Bracket: - Taxable income: $[/tex]95,600
- From the given table, the [tex]$95,600 falls within the tax bracket of $[/tex]89,076 to [tex]$170,050 which has a marginal tax rate of 24%. 2. Calculate the Tax Owed: - The formula for this tax bracket is \(0.24x - 6104.50\). - Plugging in the taxable income: \[ Tax\ Owed = 0.24 \times 95,600 - 6,104.50 = 22,944 - 6,104.50 = 16,839.50 \] 3. Compute the Effective Tax Rate: - Effective Tax Rate \(= \left(\frac{Tax\ Owed}{Taxable\ Income}\right) \times 100\%\) - Using the values: \[ Effective Tax Rate = \left(\frac{16,839.50}{95,600}\right) \times 100\% \approx 17.61\% \] So, the effective tax rate for a taxable income of $[/tex]95,600 is approximately 17.61%, rounded to the nearest hundredth. Hence, the correct answer is:

- [tex]$17.61 \%$[/tex]
Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.