Jurisdiction M imposes an individual income tax based on the following schedule. $$\begin{array} { | c | c | }
\hline \text { Rate } & \text { Income bracket } \
\hline 5 \% & \$ - 0 - \text { to } \$ 50,000 \
\hline + 8 \% & \$ 50,001 \text { to } \$ 200,000 \
\hline + 12 \% & \$ 200,001 \text { ard above } \
\hline
\end{array}$$ Mr. Coen has $78,000 taxable income. Compute the tax on this income.

Question

Jurisdiction M imposes an individual income tax based on the following schedule. $$\begin{array} { | c | c | } 
\hline \text { Rate } & \text { Income bracket } \
\hline 5 \% & \$ - 0 - \text { to } \$ 50,000 \
\hline + 8 \% & \$ 50,001 \text { to } \$ 200,000 \
\hline + 12 \% & \$ 200,001 \text { ard above } \
\hline
\end{array}$$ Mr. Coen has $78,000 taxable income. Compute the tax on this income.

Quizplus · Accepted Answer

The tax on the first $50,000 is $50,000 x 5% = $2,500. The tax on the next $150,000 is $150,000 x 8% = $12,000. The total tax is $2,500 + $12,000 = $14,500.

Jurisdiction M Imposes an Individual Income Tax Based on the Following