1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Feliz [49]
2 years ago
12

In a certain jurisdiction caroline, who is earning $42,200, currently pays a flat percentage of 25% income tax. The tax authorit

ies suggest a change to a progressive income tac system as follows: 1. Charging 15% on a person's income up to $20,000. 2. Changing 30% on any income above that. How much less will caroline be paying in income tax under the proposed changes? round your answer to the nearest dollar.
Business
1 answer:
NISA [10]2 years ago
6 0

The amount of tax paid less by Caroline as per the new taxation policies will be $950 over her annual salary of $42,200 after the taxes are applied assuming deductions being made.

The calculation of tax saved by Caroline will be done on the basis of comparing the taxation rates of both the policies after taking the changes into account.

<h3>Calculation of tax savings</h3>

The formula for calculation of tax will be done as follows when the taxes are charged on flat basis under the old policy,

\rm Income\ Tax= Salary\ x\ Rate\ of\ Taxation\\\\\rm Income\ Tax= 42200\ x\ {\dfrac{25}{100}\\\\\\\\\\\\\\rm Income\ Tax= \$10550

The taxation for the first $20000 as per the new policy will be

\rm Income\ Tax\ Threshold= 20000\ x\ \dfrac{15}{100}\\\\\rm Income\ Tax= \$3000

Calculating further taxation,

\rm Income\ Tax= 22200\ x\ \dfrac{30}{100}\\\\\rm Income\ Tax= \$6600

So, total taxation as per the new policy will be $9600. Now comparing the taxation of old scheme with new scheme, we get,

\rm Income\ Tax\ Savings= Old\ Taxation - New\ Taxation\\\\\rm Income\ Tax\ Savings=10550-9600\\\\\rm Income\ Tax\ Savings=950

So, the total taxes saved are $950 when the taxation rate changes.

Hence, the correct statement is that tax savings of $950 is possible when the authorities change the taxation rates to such slab rates by Caroline.

Learn more about tax savings here:

brainly.com/question/2396701

You might be interested in
If a manufacturing process takes 4 hours per unit of x and 2 hours per unit of y and a maximum of 100 hours of manufacturing pro
lilavasa [31]

Answer:

The algebraic formulation of the constraint is 4X+2Y ≤ 100

Explanation:

The algebraic formulation of the constraint is shown below:

Given that

The number of hours taken per unit of x is 4 hours

And the number of hours taken per unit of x is 2 hours

And, the maximum hours available is 100

Now based on the above information

The  algebraic formulation of the constraint is

= 4X+2Y ≤ 100

hence, the same is to be considered

6 0
2 years ago
You are a junior in college. You sent your resume to a half-dozen companies hoping to get a summer internship. Two weeks ago XYZ
zlopas [31]

Answer:

I would politely reach out to XYZ organization and let them know I won't be taking them on their offer

Explanation:

In this particular situation, there is no legal binding in this agreement to start work. There is no responsibility from me to XYZ corporation.

If this new offer excited me more than what XYZ corporation has offered, then I have to decide which company i would decide to do my internship with. So I would have to politely decline the offer from XYZ.

3 0
2 years ago
Information related to Mingen back Company for 2015 is summarized below: Instructions: A. What amount of bad debt expense will M
Alex Ar [27]

Answer:

jhgiojhugfvcpokjhgfuhjkm,l;/;.l,kmjbh

Explanation:

5 0
3 years ago
Tentacle Television Antenna Company provided the following manufacturing costs for the month of June.
Luden [163]

Answer: Tentacle's total fixed costs are: $65400.

Explanation: The fixed components of the information provided by Tentacle Television Antenna Company are:

-Janitor's salary $4000

-Property taxes $15000

-Equipment depreciation (straight-line) $22000

-Factory insurance $14000

-Factory manager's salary $10400

So: 4000 + 15000+ 22000 + 14000 + 10400 = <u>$65400.</u>

8 0
3 years ago
What is one difference between government agencies and government contractors
prohojiy [21]
While many processes remain the same between the two contract types, the primary difference is in the legal powers of the federal government. This authority gives the government unique flexibility in changing contracts to suit its needs.
4 0
2 years ago
Read 2 more answers
Other questions:
  • Problem 14-13 Calculating the WACC [LO3] Dinklage Corp. has 4 million shares of common stock outstanding. The current share pric
    12·1 answer
  • It is quite clear that Jean-Baptiste Colbert, Louis XIV’s chief accountant, was instrumental in bringing back the financial glor
    10·1 answer
  • Use the drop-down menu to complete each statement. The property in a mixed market economy likely is . Most of the property in co
    5·2 answers
  • Goods X and Y are perfect substitutes. When the market price of good X is​ $5/unit, firm F produces 500 units of X. When the pri
    8·1 answer
  • After researching products similar to yours in the industry, you decide that your product has superior value. As such, you decid
    5·1 answer
  • Peter Company acquired 75 percent of Sally Company on January 1, 2019 for $712,500. During 2019, Sally purchased inventory for $
    15·1 answer
  • Assume the following information:
    6·1 answer
  • Oh no! You bounced a check. You must pay _____________, fill in the blank, to the business you wrote the original check to.
    13·1 answer
  • Reasons for unequal distribution of income in developing countries​
    14·2 answers
  • What is the future value of a 500 annuity payment over wight years if interest rates are 14 percent?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!