Jurisdiction M imposes an individual income tax based on the following schedule. Ms. Owen has $314,000 taxable income. Compute the tax on this income.

Question

Jurisdiction M imposes an individual income tax based on the following schedule.  Ms. Owen has $314,000 taxable income. Compute the tax on this income.

Quizplus · Accepted Answer

According to the given schedule, the tax on $314,000 taxable income would be calculated as follows:
$45,000 @ 2% = $900
$45,350 @ 3% = $1,360.50
$49,000 @ 4% = $1,960
$59,000 @ 5% = $2,950
$75,300 @ 6% = $4,518
$314,000 - $273,650 = $40,350 @ 7% = $2,824.50
Total tax = $14,513.50
Therefore, the correct option is B) $28,180.

Jurisdiction M Imposes an Individual Income Tax Based on the Following