According to the U.S.Federal Tax Rates chart from the textbook (Table 17.1),a person earning $100,000 in a given year is in the 28% tax bracket.How much will this individual owe in taxes for that year?

Question

Quizplus · Accepted Answer

The tax owed would be calculated by taking $100,000 x 0.28 (the tax rate for the 28% tax bracket), which equals $28,000. However, the individual may have deductions and credits that would lower their taxable income and decrease the amount owed. Therefore, the answer is less than $28,000 but greater than $15,000. Option D is the best choice.