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Ambrosia has an annual salary of $75,000. She contributes 25% of her pre-tax income to her 401(k), and he pays $225 per month for health insurance (pre-tax, deducted after 401(k)). All taxes are calculated based on Ambrosia’s adjusted gross income (pay remaining after 401(k) and insurance payments). She must pay: 8% tax on the first $8,000 in income, 18% tax on any income between $8,001 and $40,000, 30% tax on income between $40,001 and $100,000, and a 8% tax on her total adjusted gross income. What is Ambrosia’s approximate annual take-home pay after all deductions have been made?   (A) $18,911.90 (B) $22,450.18 (C) $32,050.25 (D) $38,801.00

Ambrosia has an annual salary of $75,000. She contributes 25% of her pre-tax income to her 401(k), and he pays $225 per month for health insurance (pre-tax, deducted after 401(k)). All taxes are calculated based on Ambrosia’s adjusted gross income (pay remaining after 401(k) and insurance payments). She must pay: 8% tax on the first $8,000 in income, 18% tax on any income between $8,001 and $40,000, 30% tax on income between $40,001 and $100,000, and a 8% tax on her total adjusted gross income. What is Ambrosia’s approximate annual take-home pay after all deductions have been made?   (A) $18,911.90 (B) $22,450.18 (C) $32,050.25 (D) $38,801.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ambrosia has an annual salary of $75,000. She contributes 25% of her pre-tax income to her 401(k), and he pays $225 per month for health insurance (pre-tax, deducted after 401(k)). All taxes are calculated based on Ambrosia’s adjusted gross income (pay remaining after 401(k) and insurance payments). She must pay: 8% tax on the first $8,000 in income, 18% tax on any income between $8,001 and $40,000, 30% tax on income between $40,001 and $100,000, and a 8% tax on her total adjusted gross income. What is Ambrosia’s approximate annual take-home pay after all deductions have been made?

 

(A) $18,911.90

(B) $22,450.18

(C) $32,050.25

(D) $38,801.00

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