What is the tax liability for an individual with $52,000 of income,which includes $2,000 of dividends,if the tax rate is 15% on income up to $25,350 and 28% on income over $25,350?

Question

Quizplus · Accepted Answer

First, we need to calculate the taxable income by subtracting any deductions and exemptions from the gross income. We don't have that information, so we'll assume the taxable income is equal to the gross income.

For income up to $25,350, the tax rate is 15%, which means the tax liability is:

$25,350 x 0.15 = $3,802.50

For the remaining income of $26,650 ($52,000 - $25,350), the tax rate is 28%, which means the tax liability is:

$26,650 x 0.28 = $7,462

Adding the two tax liabilities together gives us:

$3,802.50 + $7,462 = $11,264.50

Therefore, the tax liability for an individual with $52,000 of income is $11,264.50, which is choice B.

What Is the Tax Liability for an Individual with $52,000