Use the following tax table to answer this question: Bait and Tackle has taxable income of $411,562. How much does it owe in taxes?

Question

Use the following tax table to answer this question:  Bait and Tackle has taxable income of $411,562. How much does it owe in taxes?

Quizplus · Accepted Answer

According to the tax table, taxable income of $411,562 falls in the tax bracket of $204,101 - $510,300. The tax owed on the amount over $204,100 is calculated by multiplying the excess over $204,100 by the tax rate (35% in this case) and adding the result to the base tax amount of $44,380.50. 
So the tax owed by Bait and Tackle would be: 
($411,562 - $204,100) x 0.35 + $44,380.50 = $139,931.08. 
Therefore, the correct answer is D.

Use the Following Tax Table to Answer This Question