Question

Helen Ming receives a travel allowance of $230 each week from her company for time away from home. If this allowance is taxable and she has a 28 percent income tax rate, what amount will she have to pay in taxes for this employee benefit? (Round your final answer to 2 decimal places.)

Answer 1

Given :

Helen Ming receives a travel allowance of $230 each week from her company for time away from home.

This allowance is taxable and she has a 28 percent income tax rate.

To Find :

Amount will she have to pay in taxes.

Solution :

Tax paid ( T ) = 28% of $230 .

`T=230* (28)/(100)\\\\T=\$64.4`

Therefore, amount will she have to pay in taxes for this employee benefit is $64.4 .

Hence, this is the required solution.