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Based on the following tax table, how is the tax payable on a taxable income of [tex]$\$ 64,000$[/tex] calculated?

\begin{tabular}{|c|c|}
\hline Taxable Income & Tax Rate \\
\hline [tex]$\[tex]$ 0$[/tex][/tex] to [tex]$\$ 9,875$[/tex] & [tex]$10 \%$[/tex] \\
\hline [tex]$\[tex]$ 9,876$[/tex][/tex] to [tex]$\$ 40,125$[/tex] & [tex]$12 \%$[/tex] \\
\hline
\end{tabular}

A. [tex]$10 \% \times \[tex]$ 9,875 + 12 \% \times(\$[/tex] 40,125 - \[tex]$ 9,875) + 22 \% \times(\$[/tex] 85,525 - \$ 64,000)$[/tex]

B. [tex][tex]$10 \% \times \$[/tex] 9,875 + 12 \% \times(\[tex]$ 40,125 - \$[/tex] 9,875) + 22 \% \times(\[tex]$ 64,000 - \$[/tex] 40,125)$[/tex]

C. [tex]$22 \% \times(\[tex]$ 85,525 - \$[/tex] 64,000)$[/tex]

D. [tex]$22 \% \times(\[tex]$ 64,000 - \$[/tex] 40,125)$[/tex]

Sagot :

GinnyAnswer
To determine the tax payable on a taxable income of [tex]$64,000, we need to calculate the tax for each applicable tax bracket. Let's break down each part. 1. Taxable Income from $[/tex]0 to [tex]$9,875: - Tax Rate: $[/tex]10\%[tex]$ - Calculation: $[/tex]0.10 \times \[tex]$9,875$[/tex]
- Result: [tex]$\$[/tex]987.50[tex]$ 2. Taxable Income from $[/tex]9,876 to [tex]$40,125: - Tax Rate: $[/tex]12\%[tex]$ - Calculation: $[/tex]0.12 \times (\[tex]$40,125 - \$[/tex]9,875)[tex]$ - Result: $[/tex]0.12 \times \[tex]$30,250 = \$[/tex]3,630.00[tex]$ 3. Taxable Income from $[/tex]40,126 to [tex]$64,000: - Tax Rate: $[/tex]22\%[tex]$ - Calculation: $[/tex]0.22 \times (\[tex]$64,000 - \$[/tex]40,125)[tex]$ - Result: $[/tex]0.22 \times \[tex]$23,875 = \$[/tex]5,252.50[tex]$ Summing these amounts together gives the total tax payable: - $[/tex]\[tex]$987.50 + \$[/tex]3,630.00 + \[tex]$5,252.50 = \$[/tex]9,870.00[tex]$ Based on the provided options, let’s examine the calculations: A. $[/tex]10\% \times \[tex]$9,875 + 12\% \times (\$[/tex]40,125 - \[tex]$9,875) + 22\% \times (\$[/tex]85,525 - \[tex]$64,000)$[/tex]
- This expression calculates the taxes for the first two brackets but incorrectly uses an upper bound of [tex]$85,525$[/tex] for the third bracket, which is not related to this problem.

B. [tex]$10\% \times \$[/tex]9,875 + 12\% \times (\[tex]$40,125 - \$[/tex]9,875) + 22\% \times (\[tex]$64,000 - \$[/tex]40,125)[tex]$ - This expression correctly calculates the taxes for all three brackets. C. $[/tex]22\% \times (\[tex]$85,525 - \$[/tex]64,000)[tex]$ - This expression only calculates the tax for an incorrect single bracket range. D. $[/tex]22\% \times (\[tex]$64,000 - \$[/tex]40,125)[tex]$ - This expression only calculates the tax for the taxable income over $[/tex]40,125[tex]$ and neglects the lower brackets. Therefore, the correct calculation is presented in option B: \[ 10\% \times \$[/tex]9,875 + 12\% \times (\[tex]$40,125 - \$[/tex]9,875) + 22\% \times (\[tex]$64,000 - \$[/tex]40,125) \]

Thus, the correct answer is:
[tex]\[ \boxed{B} \][/tex]
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