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Brian made $25,000 in taxable income last year.Suppose the income tax rate is 10% for the first $9500 plus 15% for the amount over $9500.How much must Brian pay in income tax for last year?

Question

Brian made 25,000intaxableincomelastyear.Supposetheincometaxrateis1025,000 in taxable income last year.Suppose the income tax rate is 10% for the first 9500 plus 15% for the amount over $9500.How much must Brian pay in income tax for last year?

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Solution

To calculate Brian's income tax, we need to follow these steps:

  1. Calculate the tax for the first 9500ofincome.Sincethetaxrateforthisportionis109500 of income. Since the tax rate for this portion is 10%, the tax would be 9500 * 10% = $950.

  2. Next, calculate the tax for the amount over 9500.Brianmade9500. Brian made 25,000, so the amount over 9500is9500 is 25,000 - 9500=9500 = 15,500. The tax rate for this portion is 15%, so the tax would be 15,500∗1515,500 * 15% = 2325.

  3. Finally, add the tax from step 1 and step 2 together to get the total tax. So, 950+950 + 2325 = $3275.

Therefore, Brian must pay $3275 in income tax for last year.

This problem has been solved

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