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A woman's gross annual salary is $45 800. She pays $5760 in mortgage loan interest, which is a non-taxable deduction. Her allowances and the two rates at which income tax is levied are shown in the following table.​

1 Answer

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Answer: $35,034

Explanation:

AI-generated answer

To determine the woman's net annual salary, we need to consider her gross salary, the non-taxable deduction for mortgage loan interest, and the income tax rates.

Given:

- Gross annual salary: $45,800

- Non-taxable deduction for mortgage loan interest: $5,760

To calculate the net annual salary, we need to subtract the non-taxable deduction from the gross salary:

Net annual salary = Gross annual salary - Non-taxable deduction

Net annual salary = $45,800 - $5,760

Net annual salary = $40,040

Now, we need to determine the income tax based on the net annual salary using the provided tax rates:

Income tax rates:

- 10% for the first $20,000 of income

- 15% for the income above $20,000

To calculate the income tax, we will calculate the tax for each portion of the income and then add them together:

Tax for the first $20,000 = $20,000 * 0.10 = $2,000

Tax for the remaining income = ($40,040 - $20,000) * 0.15 = $3,006

Total income tax = Tax for the first $20,000 + Tax for the remaining income

Total income tax = $2,000 + $3,006

Total income tax = $5,006

Finally, to calculate the woman's net annual salary after deducting income tax:

Net annual salary after income tax = Net annual salary - Total income tax

Net annual salary after income tax = $40,040 - $5,006

Net annual salary after income tax = $35,034

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