Assume the marginal tax rate is 12 percent for the first $40,000 of income,28 percent for income between $40,000 and $100,000,and 30 percent for any income over $100,000.If Sarah has taxable income equal to $120,000 for the year,what is her tax bill?

Question

Quizplus · Accepted Answer

The correct answer is A.The tax bill is calculated as follows:- 12% of the first $40,000 = $4,800- 28% of the next $60,000 ($100,000 - $40,000) = $16,800- 30% of the remaining $20,000 ($120,000 - $100,000) = $6,000Total tax bill = $4,800 + $16,800 + $6,000 = $27,600

Assume the Marginal Tax Rate Is 12 Percent for the First