You have taxable income of $60,000 (22% federal marginal tax bracket) . If you combine your federal marginal tax with payroll tax and state income tax, your total marginal tax rate on additional earnings is 37.65%. You learn that your employer will give you a $5,000 bonus at the end of the year. How much of your bonus will you be able to spend? (Round to the nearest whole dollar.)
A) $1,250
B) $1,883
C) $3,118
D) $3,750
Correct Answer:
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