Table 12-9
The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income.

-Refer to Table 12-9.For this tax schedule,what is the total tax liability for an individual with $280,000 in taxable income?
A) $105,700
B) $108,900
C) $111,600
D) $117,300

Question

Table 12-9
The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income.
 
-Refer to Table 12-9.For this tax schedule,what is the total tax liability for an individual with $280,000 in taxable income?
A) $105,700 
B) $108,900 
C) $111,600 
D) $117,300

Quizplus · Accepted Answer

To calculate the total tax liability for an individual with $280,000 in taxable income, we need to calculate the tax on each incremental amount of income. 
The tax on the first $9,875 of income is 10% of $9,875 = $987.50 
The tax on the next $30,250 of income is 12% of $30,250 = $3,630 
The tax on the next $45,400 of income is 22% of $45,400 = $9,988 
The tax on the next $85,525 of income is 24% of $85,525 = $20,526 
Finally, the tax on the remaining $10950 of income is 32% of $10,950 = $3,506. 
Adding all these together, we get a total tax liability of $987.50 + $3,630 + $9,988 + $20,526 + $3,506 = $111,600. Therefore, the best choice is C, $111,600.

Table 12-9 the Table Below Shows the Marginal Tax Rates for an for an Unmarried