USE THE FOLLOWING TAX RATE SCHEDULE TO ANSWER THE NEXT SIX QUESTIONS.
If taxable income is:

-What is the value of X in the tax table?

Question

USE THE FOLLOWING TAX RATE SCHEDULE TO ANSWER THE NEXT SIX QUESTIONS.
If taxable income is:

-What is the value of X in the tax table?

Quizplus · Accepted Answer

Using the tax table, we can see that X falls between the taxable income range of $57,001-$90,000, therefore the tax payable is calculated as $3,572 plus 32.5 cents for each $1 over $57,000.

[(X-57000)*0.325] + 3572 = tax payable

Substituting the given taxable income of $18,625, we get:

[(18625-57000)*0.325] + 3572 = tax payable

(-38375*0.325) + 3572 = tax payable

-12478.75 + 3572 = tax payable

$8906.75 = tax payable

Therefore, the correct answer is A) 5705, as this is the nearest value to the tax payable of $8906.75 that is provided in the answer choices.