Question

Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income. abby’s federal income tax is equal to 19.6% of her federal taxable income. if abby owes $8,880.17 in federal income tax, how much does she owe in state income tax?

Answer 1

$2,437.52 is the right answer.

Answer 2

The Abby owe in state income tax is $2437.52 .

Explanation:

Let us assume that the federal taxable income be x .

As given

Abby’s federal income tax is equal to 19.6% of her federal taxable income.

If abby owes $8,880.17 in federal income tax .

19.6% is written in the decimal form

`= (19.6)/(100)`

= 0.196

Thus equation becomes

0.196 × Federal taxable income = Federal income tax

0.196 × x = 8880.17

0.196x = 8880.17

`x = (8880.17)/(0.196)`

x = $45306.9898

Thus federal taxable income is $45306.9898 .

As given

Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income.

5.38% is written in the decimal form

`= (5.38)/(100)`

= 0.0538

Thus

State income tax = 0.0538 × Federal taxable income

= 0.0538 × $45306.9898

= $2437.52 (Approx)

Therefore the Abby owe in state income tax is $2437.52 .