Answer:
Federal tax = $10,856.25
Explanation:
Given:
Tax rate schedule for year 2014.
Income between $36,900 - $89,350
$5,081.25 + 25% over $36,900
Total income = $60,000
Computation:
So,Income between $36,900 - $89,350
Federal tax = $5,081.25 + 25% ($60,000 - $36,900)
Federal tax = $5,081.25 + 25% ($23,100)
Federal tax = $5,081.25 + 0.25 ($23,100)
Federal tax = $5,081.25 + $5,775
Federal tax = $10,856.25