Final answer:
To calculate the tax owed on a $73,000 taxable income using the 2016 marginal tax rates, one must apply the percentages to the respective income brackets. This results in an approximate total tax of $14,106.25, which is not an exact match to any given answer options, suggesting a more detailed tax bracket information is needed for precise calculation.
Step-by-step explanation:
To calculate the tax owed by a single man with a taxable income of $73,000 using the 2016 marginal tax rates, we must apply the appropriate tax rates to the corresponding portions of his income.
According to the information provided, the income ranges are taxed as follows:
- Income from $0 to $9,075 is taxed at 10%
- Income from $9,075 to $36,900 is taxed at 15%
- Income from $36,900 to $73,000, the portion of income up to this man's total taxable income, is taxed at the next marginal rate. Let's assume for this calculation it is 25% (the exact rates for each bracket are not provided, so this is based on the instructional information).
The tax owed for each portion can be calculated as follows:
- 10% on $9,075 = $907.50
- 15% on $27,825 (which is $36,900 - $9,075) = $4,173.75
- 25% on $36,100 (which is $73,000 - $36,900) = $9,025
Add these amounts together to find the total tax:
$907.50 + $4,173.75 + $9,025 = $14,106.25
This is not an exact answer from the options given, suggesting there may be a detail missing from the tax brackets provided, as actual tax brackets may include more levels or different percentage rates. Without the exact 2016 tax brackets, the closest correct answer from the options given based on this estimation is B. $13,290, but it should be noted this is an approximation.