Question

Amber invested in a new software company that has done very well. this year, she made a $10,000 profit before taxes. she also had to pay a $500 fee to her broker. this fee can be subtracted from her profits to lower her taxable income. given amber’s income, her federal tax on this investment is 20 percent, while the state tax is 5 percent. with all of this in mind, what is the real value of the profit amber made? amber paid in taxes to the federal government on her investment. she also paid in taxes to the state government. the real value of the profit amber made is____.

Answer 1

The real value of Amber's profit after accounting for brokerage fees and federal and state taxes is $7,125. She paid $1,900 in federal taxes and $475 in state taxes.

Step-by-step explanation:

The question involves calculating the real value of Amber's profit after accounting for broker fees and tax payments. Let's go through the calculations step by step:

1. First, we subtract the brokerage fee from Amber's initial profit: $10,000 - $500 = $9,500. This is her profit after the brokerage fee.
2. Next, we calculate the federal tax: 20% of $9,500 = $1,900.
3. We then calculate the state tax: 5% of $9,500 = $475.
4. Finally, we subtract the taxes from her profit after brokerage fees to find the real value of Amber's profit: $9,500 - $1,900 - $475 = $7,125.

Therefore, the real value of the profit Amber made is $7,125, after paying $1,900 in federal taxes and $475 in state taxes.

Answer 2

Amber paid [ $1,900 ] in taxes to the federal government on her investment.

She also paid [ $475 ] in taxes to the state government.

The real value of the profit Amber made is [ $7,125 ].

Step-by-step explanation:

i got it wrong