Question

On Austin made $40,000 in taxable income last year. Suppose the Income tax rate is 15% for the first $8500 plus 18% for o the amount over $850o. How much must Austin pay in income tax for last year?

Answer 1

`\begin{gathered} \text{The tax on the first \$8500 is : }(15)/(100)\text{ }*\text{ \$8500} \\ \text{ =0.15 }*\text{ \$8500} \\ \text{ = \$1275} \\ \text{The Tax on the Reamining income after the first deduction is }\colon\text{ }(18)/(100)\text{ }*\text{ (40,000-8500)} \\ \text{ }(18)/(100)\text{ }*\text{ \$31500} \\ \text{ =\$5670} \\ \text{Total Amount to be paid for income tax is : \$1275 + \$5670 }=\text{ \$6945} \end{gathered}`