Table 12-1
-Refer to Table 12-1.If Morgan makes $142,700 this year,what would her tax liability be,approximately
A)$26,502
B)$37,102
C)$41,383
D)$50,659

Question

Table 12-1 
-Refer to Table 12-1.If Morgan makes $142,700 this year,what would her tax liability be,approximately
A)$26,502 
B)$37,102 
C)$41,383 
D)$50,659

Quizplus · Accepted Answer

To calculate Morgan's tax liability, we need to find her taxable income. Her taxable income is her income (142,700) minus her deductions (12,200 + 9,500 + 3,900 = 25,600). 
Taxable Income = 142,700 - 25,600 = 117,100.

Using Table 12-1, we can find Morgan's tax liability by finding the appropriate tax bracket for her taxable income. Her taxable income falls into the bracket for married taxpayers filing jointly, with a tax rate of 24%. 
Tax Liability = (81,050 x 0.10) + (19,750 - 81,050) x 0.12 + (77,400 - 19,750) x 0.22 + (117,100 -77,400) x 0.24
Tax Liability = $9,365 + $9,105 + $15,988 + $6,925
Tax Liability = $41,383

Therefore, the best choice is C, $41,383 is her tax liability, approximately.

Table 12-1 -Refer to Table 12-1.If Morgan Makes $142,700 This Year,what Would