Last year,you paid $2000 income tax and the marginal tax rate was 25 percent for income over $10,000.How much was your income?

Name: Last year,you paid $2000 income tax and the marginal tax rate was 25 percent for income over $10,000.How much was your income?
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

If the marginal tax rate is 25%, it means that the income tax paid on the portion of income over $10,000 is 25%. Therefore, the income can be calculated as follows:

$2000 ÷ 0.25 = $8000
$10,000 + $8000 = $18,000

So, the answer is C, $18,000.

Last Year,you Paid $2000 Income Tax and the Marginal Tax