Question

Your sole proprietorship makes $90,000

Answer 1

$63,000

Explanation:

Given that the total profit is $90,000 per year.

The average federal tax rate is 24% and the state tax rate is 6%.

So, total tax rate = 24% +6% =30%

Total taxable amount = 30% of $90,000

=(30/100)x 90,000=$27,000

The remaining amount = $90,000 - $27,000 = $63,000

Hence, I will keep $63,000 of my profit.