Answered: Jose made $20,000 in taxable income…

Jose made $20,000 in taxable income last year. Suppose the income tax rate is 10% for the first $7000 plus 15% for the amount over $7000. How much must Jose pay in income tax for last year?

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

v 18
Jose made $20,000 in taxable income last year.
Suppose the income tax rate is 10% for the first $7000 plus 15% for the amount over $7000.
How much must Jose pay in income tax for last year?
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