Use the information provided in Exhibit 11-4.If a person's taxable income is $110,000,how much does he pay in taxes?

Question

Quizplus · Accepted Answer

Based on Exhibit 11-4, for a taxable income of $110,000, the tax liability would be calculated as follows:

- First $10,000 taxed at 10% = $1,000
- Next $30,000 taxed at 12% = $3,600
- Next $50,000 taxed at 22% = $11,000
- The remaining $20,000 taxed at 24% = $4,800

Total tax liability = $20,400
Plus the additional Medicare tax of 0.9% on income above $200,000 = $990

Therefore, the total tax amount payable would be $20,400 + $990 = $21,390, which is closest to choice C ($24,750).

Use the Information Provided in Exhibit 11-4