Answer:
$15,000
Explanation:
Given:
Total taxable income = $75,000
Tax on first $25,000 = 10% of 25,000
Tax on Second $25,000 = 20% of 25,000
Tax on Third $25,000 = 30% of 25,000
Total income tax = ?
Computation of total income tax:
Total income tax = 10% of 25,000 + 20% of 25,000 + 30% of 25,000
Total income tax = (0.1 × 25,000) + (0.2 × 25,000) + (0.3 × 25,000)
Total income tax = 2,500 + 5,000 + 7,500
Total income tax = 15,000
