A certain state uses the following progressive tax rate for calculating individual income tax: Income Range ($) Progressive Tax Rate 0-10,000 3% 10,001 - 50,000 5% 50,001 - 100,000 5.5% Calculate the state income tax owed on a $70,000 per year salary.
A certain state uses the following progressive tax rate for calculating individual income tax: Income Range ($) Progressive Tax Rate 0-10,000 3% 10,001 - 50,000 5% 50,001 - 100,000 5.5% Calculate the state income tax owed on a $70,000 per year salary.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
What is the tax owed ?
![A certain state uses the following progressive
tax rate for calculating individual income tax:
Income
Range ($)
0 - 10,000
10,001 - 50,000
50,001 - 100,000
3%
5%
5.5%
Calculate the state income tax owed on a $70,000
per year salary.
tax = $[?]
Round your answer to the nearest whole dollar amount.
Progressive
Tax Rate
023 International Academy of Science. All Rights Reserved.
Enter](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f51cca4-a755-41a9-8940-94675a010560%2Fb8435b01-1d58-4484-9278-a758473e6108%2F6u0ldeo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A certain state uses the following progressive
tax rate for calculating individual income tax:
Income
Range ($)
0 - 10,000
10,001 - 50,000
50,001 - 100,000
3%
5%
5.5%
Calculate the state income tax owed on a $70,000
per year salary.
tax = $[?]
Round your answer to the nearest whole dollar amount.
Progressive
Tax Rate
023 International Academy of Science. All Rights Reserved.
Enter
Expert Solution
Step 1 Concept
We have to calculate the taxes based on the tax brackets until the complete salary of $70000.
So, the first 0 to $10000 of the $70000 would be taxed at 3% as per the table and so on.
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