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Let's analyze the tax table to determine how the amount of federal income tax withheld changes as the number of withholding allowances increases, focusing only on the case where the number of withholding allowances is less than 6.
The given tax table shows the amount of income tax withheld for different wage ranges and various numbers of withholding allowances:
For the wage range \[tex]$720 - \$[/tex]740:
- 0 allowances: \[tex]$80 - 1 allowance: \$[/tex]62
- 2 allowances: \[tex]$44 - 3 allowances: \$[/tex]26
- 4 allowances: \[tex]$14 - 5 allowances: \$[/tex]1
For the wage range \[tex]$740 - \$[/tex]760:
- 0 allowances: \[tex]$83 - 1 allowance: \$[/tex]65
- 2 allowances: \[tex]$47 - 3 allowances: \$[/tex]28
- 4 allowances: \[tex]$16 - 5 allowances: \$[/tex]3
For the wage range \[tex]$760 - \$[/tex]780:
- 0 allowances: \[tex]$86 - 1 allowance: \$[/tex]68
- 2 allowances: \[tex]$50 - 3 allowances: \$[/tex]31
- 4 allowances: \[tex]$18 - 5 allowances: \$[/tex]5
For the wage range \[tex]$780 - \$[/tex]800:
- 0 allowances: \[tex]$89 - 1 allowance: \$[/tex]71
- 2 allowances: \[tex]$53 - 3 allowances: \$[/tex]34
- 4 allowances: \[tex]$20 - 5 allowances: \$[/tex]7
For the wage range \[tex]$800 - \$[/tex]820:
- 0 allowances: \[tex]$92 - 1 allowance: \$[/tex]74
- 2 allowances: \[tex]$56 - 3 allowances: \$[/tex]37
- 4 allowances: \[tex]$22 - 5 allowances: \$[/tex]9
For the wage range \[tex]$820 - \$[/tex]840:
- 0 allowances: \[tex]$95 - 1 allowance: \$[/tex]77
- 2 allowances: \[tex]$59 - 3 allowances: \$[/tex]40
- 4 allowances: \[tex]$24 - 5 allowances: \$[/tex]11
For the wage range \[tex]$840 - \$[/tex]860:
- 0 allowances: \[tex]$98 - 1 allowance: \$[/tex]80
- 2 allowances: \[tex]$62 - 3 allowances: \$[/tex]43
- 4 allowances: \[tex]$26 - 5 allowances: \$[/tex]13
Now, according to the observations made, we have the following insights:
- As the number of withholding allowances increases, the amount of federal income tax withheld decreases.
- This pattern is observed across all given wage ranges from \[tex]$720 to \$[/tex]860 for the number of withholding allowances from 0 to 5.
Therefore, when the gross wage stays the same, if the withholding allowances increase, the amount of federal income tax withheld decreases in each case where the number of allowances is less than 6.
Thus, the correct answer for the scenario where the number of withholding allowances increases and causes the amount of federal income tax withheld to decrease is:
a. Gross wage stays the same and withholding allowances increase.
The given tax table shows the amount of income tax withheld for different wage ranges and various numbers of withholding allowances:
For the wage range \[tex]$720 - \$[/tex]740:
- 0 allowances: \[tex]$80 - 1 allowance: \$[/tex]62
- 2 allowances: \[tex]$44 - 3 allowances: \$[/tex]26
- 4 allowances: \[tex]$14 - 5 allowances: \$[/tex]1
For the wage range \[tex]$740 - \$[/tex]760:
- 0 allowances: \[tex]$83 - 1 allowance: \$[/tex]65
- 2 allowances: \[tex]$47 - 3 allowances: \$[/tex]28
- 4 allowances: \[tex]$16 - 5 allowances: \$[/tex]3
For the wage range \[tex]$760 - \$[/tex]780:
- 0 allowances: \[tex]$86 - 1 allowance: \$[/tex]68
- 2 allowances: \[tex]$50 - 3 allowances: \$[/tex]31
- 4 allowances: \[tex]$18 - 5 allowances: \$[/tex]5
For the wage range \[tex]$780 - \$[/tex]800:
- 0 allowances: \[tex]$89 - 1 allowance: \$[/tex]71
- 2 allowances: \[tex]$53 - 3 allowances: \$[/tex]34
- 4 allowances: \[tex]$20 - 5 allowances: \$[/tex]7
For the wage range \[tex]$800 - \$[/tex]820:
- 0 allowances: \[tex]$92 - 1 allowance: \$[/tex]74
- 2 allowances: \[tex]$56 - 3 allowances: \$[/tex]37
- 4 allowances: \[tex]$22 - 5 allowances: \$[/tex]9
For the wage range \[tex]$820 - \$[/tex]840:
- 0 allowances: \[tex]$95 - 1 allowance: \$[/tex]77
- 2 allowances: \[tex]$59 - 3 allowances: \$[/tex]40
- 4 allowances: \[tex]$24 - 5 allowances: \$[/tex]11
For the wage range \[tex]$840 - \$[/tex]860:
- 0 allowances: \[tex]$98 - 1 allowance: \$[/tex]80
- 2 allowances: \[tex]$62 - 3 allowances: \$[/tex]43
- 4 allowances: \[tex]$26 - 5 allowances: \$[/tex]13
Now, according to the observations made, we have the following insights:
- As the number of withholding allowances increases, the amount of federal income tax withheld decreases.
- This pattern is observed across all given wage ranges from \[tex]$720 to \$[/tex]860 for the number of withholding allowances from 0 to 5.
Therefore, when the gross wage stays the same, if the withholding allowances increase, the amount of federal income tax withheld decreases in each case where the number of allowances is less than 6.
Thus, the correct answer for the scenario where the number of withholding allowances increases and causes the amount of federal income tax withheld to decrease is:
a. Gross wage stays the same and withholding allowances increase.
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