Kayla and Kingston run a shuttle service from Water Tower Place to Chicago O'Hare airport. Last month, they recorded the following: If 25% of their net income is paid to the government in taxes, what is their net income after taxes?
A) $1410.00
B) $1160.00
C) $682.00
D) $870.00

Question

Kayla and Kingston run a shuttle service from Water Tower Place to Chicago O'Hare airport. Last month, they recorded the following:  If 25% of their net income is paid to the government in taxes, what is their net income after taxes?
A) $1410.00 
B) $1160.00 
C) $682.00 
D) $870.00

Quizplus · Accepted Answer

Revenues [$2400.00] - expenses [total $1240.00] = net income before taxes [$1160.00]. Taxes are calculated at 25% of the net income before taxes. [25% of $1160 = $290.00] Net income after taxes = $1160.00 - $290 = $870.00.

Kayla and Kingston Run a Shuttle Service from Water Tower