Janet earned $78,000 last year. Tax rate earned on the first $20,000 is 15%; 25% on the next $25,000 and 30% for the remainder of income. What was the amount of tax paid?
A) 18,200
B) 19,150
C) 20,250
D) 22,000
E) 22,500

Question

Quizplus · Accepted Answer

Janet's tax is calculated as follows: 15% on the first $20,000 = $3,000; 25% on the next $25,000 = $6,250; and 30% on the remaining $33,000 ($78,000 - $45,000) = $9,900. Adding these amounts gives a total tax of $19,150.

Janet Earned $78,000 Last Year