Answer:
$21,651.65
Step-by-step explanation:
Michael received 97,540
Deductions is 2595
So Michael will pay tax on the amount:
97540 - 2595 = $94,945
According to 2017 - 2018 tax table, we need to look at the bracket in which $94,945 falls on.
The rule is:
$87,001 - $180,000 --- $19,822 plus 37c for each $1 over $90,000
$19,822 already have to pay
and $0.37 for every dollar OVER 90,000
Hence, 94,945 - 90,000 = 4945 (have to pay 0.37 per $1) So, the amount is:
0.37 * 4945 = $1829.65
So, total tax amount payable is:
$1829.65 + $19,822 = $21,651.65