The tax rates are as shown.Nevada Mining currently has taxable income of $97,800.How much additional tax will the firm owe if taxable income increases by $21,000? $$\begin{array} { r c }
\frac { \text { Taxable Income } } { } & \text { Tax Rate } \
\hline 50 - 50,000 & 15 \% \
50,001 - 75,000 & 25 \% \
75,001 - 100,000 & 34 \% \
100,001 - 335,000 & 39 \%
\end{array}$$
A)$8,080
B)$8,130
C)$8,155
D)$8,170
E)$8,190

Question

The tax rates are as shown.Nevada Mining currently has taxable income of $97,800.How much additional tax will the firm owe if taxable income increases by $21,000? $$\begin{array} { r c } 
\frac { \text { Taxable Income } } { } & \text { Tax Rate } \
\hline 50 - 50,000 & 15 \% \
50,001 - 75,000 & 25 \% \
75,001 - 100,000 & 34 \% \
100,001 - 335,000 & 39 \%
\end{array}$$
A)$8,080
B)$8,130
C)$8,155
D)$8,170
E)$8,190

Quizplus · Accepted Answer

Additional tax = .34($100,000 - $97,800) + .39($97,800 + $21,000 - $100,000) = $8,080

The Tax Rates Are as Shown A)$8,080 B)$8,130 C)$8,155 D)$8,170 E)$8,190

The Tax Rates Are as Shown A)$8,080
B)$8,130
C)$8,155
D)$8,170
E)$8,190