Question

What is the amount of income tax Vickie will pay annually, given that she earns $40,000 and pays 20% in income tax?

A) $8,000

B) $10,000

C) $6,000

D) $4,000

Answer 1

Vickie will pay 8,000 in income tax annually.

Step-by-step explanation:

To find the amount of income tax Vickie will pay annually, we need to multiply her income by the tax rate.

Income tax = Income × Tax rate

Income tax = 40,000 × 0.20

Income tax = 8,000

Therefore, Vickie will pay 8,000 in income tax annually. Option A) 8,000 is the correct answer.