Exhibit 11-4

-Refer to Exhibit 11-4. If a person's taxable income is $20,000,how much does he pay in taxes?

Question

Exhibit 11-4
 
-Refer to Exhibit 11-4. If a person's taxable income is $20,000,how much does he pay in taxes?

Quizplus · Accepted Answer

From the Exhibit 11-4, we can see that for taxable income between $20,001 and $30,000, the tax rate is 10% and the tax due is $1,000. Since the person's taxable income is $20,000, which falls under the lower tax bracket, he does not have to pay any tax. Therefore, the correct answer is $0, which is not one of the given options. The closest option is $3,000, but that is incorrect. Therefore, the best choice is D, which is the closest and correct option among the given choices.

Exhibit 11-4 -Refer to Exhibit 11-4. If a Person's Taxable Income Is