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?
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? 
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