Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

(Federal Income Taxes and Piecewise Functions MC)

The piecewise function represents the amount of taxes owed, [tex]f(x)[/tex], as a function of the taxable income, [tex]x[/tex]. Use the marginal tax rate chart or the piecewise function to answer the question.

Marginal Tax Rate Chart
\begin{tabular}{|l|l|}
\hline
Tax Bracket & Marginal Tax Rate \\
\hline
\[tex]$0-\$[/tex]10,275 & 10\% \\
\hline
\[tex]$10,276-\$[/tex]41,175 & 12\% \\
\hline
\[tex]$41,176-\$[/tex]89,075 & 22\% \\
\hline
\[tex]$89,076-\$[/tex]170,050 & 24\% \\
\hline
\[tex]$170,051-\$[/tex]215,950 & 32\% \\
\hline
\[tex]$215,951-\$[/tex]539,900 & 35\% \\
\hline
\${content-ask}gt;539,901 & 37\% \\
\hline
\end{tabular}

[tex]
f(x)=\left\{\begin{array}{ll}
0.10 x, & 0 \leq x \leq 10,275 \\
0.12 x-205.50, & 10,276 \leq x \leq 41,175 \\
0.22 x-4,323.00, & 41,176 \leq x \leq 89,075 \\
0.24 x-6,104.50, & 89,076 \leq x \leq 170,050 \\
0.32 x-19,708.50, & 170,051 \leq x \leq 215,950 \\
0.35 x-26,187.00, & 215,951 \leq x \leq 539,900 \\
0.37 x-36,985.00, & x \geq 539,901
\end{array}\right.
[/tex]

Determine the effective tax rate for a taxable income of \$95,600. Round the final answer to the nearest hundredth.
[tex]17.00\%[/tex]

Sagot :

GinnyAnswer
To determine the effective tax rate for a taxable income of [tex]$95,600, we will follow these steps: 1. Identify the Appropriate Tax Bracket: First, see which bracket $[/tex]95,600 falls into. According to the provided tax brackets, [tex]$95,600 falls in the range $[/tex]89,076 - [tex]$170,050$[/tex], which has a marginal tax rate of 24%.

2. Use the Piecewise Function: Since [tex]$95,600 is in the range $[/tex]89,076 - [tex]$170,050$[/tex], we will use the equation for this range:
[tex]\[ f(x) = 0.24x - 6,104.50 \][/tex]

3. Calculate the Taxes Owed: Substitute [tex]$95,600 for \( x \) in the piecewise function: \[ f(95,600) = 0.24 \cdot 95,600 - 6,104.50 \] 4. Perform the Calculation: \[ 0.24 \cdot 95,600 = 22,944 \] \[ 22,944 - 6,104.50 = 16,839.50 \] Therefore, the total taxes owed for a taxable income of $[/tex]95,600 is [tex]$16,839.50. 5. Calculate the Effective Tax Rate: The effective tax rate is the ratio of the taxes owed to the taxable income, expressed as a percentage. We calculate it using the formula: \[ \text{Effective Tax Rate} = \left( \frac{\text{Taxes Owed}}{\text{Taxable Income}} \right) \times 100 \] Substituting the values we have: \[ \text{Effective Tax Rate} = \left( \frac{16,839.50}{95,600} \right) \times 100 \approx 17.61\% \] 6. Round to the Nearest Hundredth: The effective tax rate, when rounded to the nearest hundredth, is \( 17.61\% \). Thus, the effective tax rate for a taxable income of $[/tex]95,600 is [tex]\( 17.61\% \)[/tex].
We hope this was helpful. Please come back whenever you need more information or answers to your queries. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.