Question

Ann made $35.000 in taxable income last year. Suppose the income tax rate is 10% for the first $8000 plus 16% for the amount over $8000. How much must Ann pay in income tax for last year?

Answer 1

$5,120 in taxes, total

Explanation:

Ann made $35,000 in taxable income last year. Suppose the income tax rate is 10% for the first $8,000 plus 16% for the amount over $8,000. How much must Ann pay in income tax for last year?

8,000 * 10% = 800 in taxes for first $8,000

remaining: 35,000 - 8,000 = $27,000 to be taxed at 16%

27,000 * 16% = $4,320

$800 + $4,320 = $5,120 in taxes, total

Answer 2

Ann must pay $800 in income tax for the first $8,000 of her taxable income because 8000 * .1 = 800

Ann must pay $4,600 in income tax for the amount of her taxable income over $8,000 because (35000 - 8000) * .16 = 4600

Therefore, Ann must pay a total of $800 + $4,600 = $<<800+4600=5400>>5,400 in income tax for last year.