Using the following table, calculate the taxes for an individual with taxable income of $20,800. $$\begin{array} { l r }
10 \% & \text { Up to } \$ 8,500 \
15 \% & \$ 8,500 - \$ 34,500 \
25 \% & \$ 34,500 - \$ 83,600 \
28 \% & \$ 83,600 - \$ 174,400 \
33 \% & \$ 174,400 - \$ 379,150 \
35 \% & \text { Over } \$ 379,150
\end{array}$$

Question

Using the following table, calculate the taxes for an individual with taxable income of $20,800. $$\begin{array} { l r } 
10 \% & \text { Up to } \$ 8,500 \
15 \% & \$ 8,500 - \$ 34,500 \
25 \% & \$ 34,500 - \$ 83,600 \
28 \% & \$ 83,600 - \$ 174,400 \
33 \% & \$ 174,400 - \$ 379,150 \
35 \% & \text { Over } \$ 379,150
\end{array}$$

Quizplus · Accepted Answer

First, we need to determine in which tax bracket $20,800 falls. It falls in the 15% tax bracket ($8,500 - $34,500).

Next, we calculate how much tax is owed in the first tax bracket. 10% of $8,500 is $850.

Then, we calculate how much tax is owed in the second tax bracket. The taxable income in this bracket is $20,800 - $8,500 = $12,300. 15% of $12,300 is $1,845.

Finally, we add the taxes owed in each bracket to get the total tax owed:

$850 + $1,845 = $2,695

Therefore, the answer is B.

Using the Following Table, Calculate the Taxes for an Individual