The requirement of a constant annual tax payment of SR 1500 means that as his or her annual income increases from SR 30000 per year to SR 50000 the proportion of his or her income lost to taxes decreases from what

The requirement of a constant annual tax payment of SR 1500 means that as his or her annual income increases from SR 30000 per year to SR 50000 the proportion of his or her income lost to taxes decreases from what

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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Question

Expert Solution

Step 1

Hi annual income is SR 30000

So hence his tax was SR 1500

Tax rate was = 1500/30000

=5%

If income was SR 50000

Then tax rate will be = 1500/50000

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