Use the following tax table to answer this question; $\quad $$\quad $$\text { Taxable Income}$ $\quad $$\text { Tax Rate}$
$\begin{array}{|r|r|c|}
\hline \$ 0- & 50,000 & 15 \% \
\hline 50,001- & 75,000 & 25 \
\hline 75,001- & 100,000 & 34 \
\hline 100,001- & 335,000 & 39 \
\hline 335,001- & 10,000,000 & 34 \
\hline
\end{array}$ BT Trucking has taxable income of $617,429.How much does it owe in taxes?
A)$96,025.86
B)$240,797.31
C)$118,542.79
D)$209,925.86
E)$201,354.82

Question

Use the following tax table to answer this question; $\quad $$\quad $$\text {  Taxable Income}$ $\quad $$\text {  Tax Rate}$
$\begin{array}{|r|r|c|}
\hline \$ 0- & 50,000 & 15 \% \
\hline 50,001- & 75,000 & 25 \
\hline 75,001- & 100,000 & 34 \
\hline 100,001- & 335,000 & 39 \
\hline 335,001- & 10,000,000 & 34 \
\hline
\end{array}$  BT Trucking has taxable income of $617,429.How much does it owe in taxes?
A)$96,025.86
B)$240,797.31
C)$118,542.79
D)$209,925.86
E)$201,354.82

Quizplus · Accepted Answer

According to the tax table, taxable income falls in the range of $335,001-$10,000,000, which has a tax rate of 34%. 
So, the tax owed by BT Trucking is: 
$335,000 × 0.39 + ($617,429 − $335,000) × 0.34 = $96,025.86 + $209,925.86 = $305,951.72 
Therefore, the correct answer is D, $209,925.86.

Use the Following Tax Table to Answer This Question; \quad

Use the Following Tax Table to Answer This Question; $\quad$