How much income tax must the Benton Trust pay in 2019 if its taxable income (after all deductions) is $4,600?
A)$460
B)$690
C)$747
D)$1,240

Question

Quizplus · Accepted Answer

Trusts and estates follow a different tax bracket structure compared to individuals. For the year 2019, the tax rate for trusts and estates on income between $2,600 and $9,300 was 24%. Therefore, the Benton Trust would pay 24% of $4,600, which equals $1,104. However, the correct calculation for the tax on $4,600, considering the progressive nature of tax brackets, would not directly apply the 24% rate to the entire amount. The specific tax amount provided in the options suggests a detailed calculation based on the tax brackets, which might not have been accurately represented in the explanation. Given the options, $747 is the closest to what might be expected from calculating tax within the provided brackets, assuming some form of standard calculation error or misunderstanding in the original explanation. However, without the exact tax bracket details and the method of calculation provided in the question, the precise calculation leading to the answer is not directly explained.

How Much Income Tax Must the Benton Trust Pay in 2019