You earned $20,000 in taxable income.The tax rate on the first $10,000 is 10%.The tax rate on income between $10,001 and $20,000,inclusive,is 20%.Your tax is ________.

Question

Quizplus · Accepted Answer

The tax on the first $10,000 of taxable income is 10%, which is $1,000. 
The remaining $10,000 of taxable income is taxed at a higher rate of 20%, resulting in a tax of $2,000. 
Therefore, the total tax due is $1,000 + $2,000 = $3,000.

You Earned $20,000 in Taxable Income