Question

John and Loretta Smith are in the 28% tax bracket. Their joint taxable income is $134,899. If the first $16,050 is taxed at 10%, with the remainder at 28%, how much tax will they owe?
A: $38,724.75
B: $30,271.75
C: $29,371.72
D: $34,882.72

Answer 1

Answer:

$34882.72

Step-by-step explanation:

Their joint taxable income is $134,899.

We are given that the first $16,050 is taxed at 10%

So, $10\% \times 16050$

$\frac{10}{100}\times 16050$

$1605$

Thus the tax on amount 16050 is 1605

Now remaining income = 134899-16050=118849

So, now we are given that remaining is taxed with 28%

So, $28\% \times 118849$

$\frac{28}{100}\times 118849$

$33277.72$

So, the total tax = 33277.72+1605=34882.72

Hence they owe $34882.72 as tax.

Hence Option D is correct.

Answer 2

0.10×16,050+0.28×(134,899−16,050) =34,882.72