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Luba_88 [7]
3 years ago
13

Kathleen murray, who is unmarried and has no children, has added up her taxable income for 2017 but needs help calculating how m

uch tax she owes. she asks you how much tax she will have to pay on her $45,000 of taxable income, which includes $3,000 of dividends paid by a u.s. corporation and $2,000 of gains from the sale of 100 shares of stock she had held for more than one year. what do you tell her?
a. $5,738.75
b. $5,988.75
c. $6,488.75
d. $6,988.75
Business
1 answer:
Ymorist [56]3 years ago
3 0
Kathleen Murray’s taxable income for 2017 is $45,000 which is within the tax income bracket of $37.950 to $91,900. Tax rate is 25%, and tax owed is $5,226.25 plus 25% of the excess over $37,950.
$45,000 - $37,950 = $7,050, excess over $37,950
Tax owed = $5,226.25 + 0.25 x $7,050
Tax owed = $6,988.75
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Answer:

A) The first household.

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