Actually the current tax bracket of 10% only accounts for Mandy’s current income. Everyone has a tax bracket based on the entire income that year. However in Mandy’s case, her income will increase by $5,000 if she withdraw the entire $5,000. Therefore the tax bracket should also increase since her total income increased.
However, since no additional data is available, let us assume that the withdrawal of the entire $5,000 would not affect the current tax bracket of 10%.
Calculating for the tax to pay = 10% of $50,000
= 0.10 * $50,000
= $5,000
Therefore Mandy will pay $5,000 in tax and she will be left by $45,000.