USE THE TAX TABLE PROVIDED BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 2.1. What is the tax liability for a married couple filing jointly with taxable income of $125,000?
A) $23,800
B) $18,427
C) $24,958
D) $16,867
E) $19,650

Question

USE THE TAX TABLE PROVIDED BELOW FOR THE FOLLOWING PROBLEM(S)
 
-Refer to Exhibit 2.1. What is the tax liability for a married couple filing jointly with taxable income of $125,000?
A) $23,800 
B) $18,427 
C) $24,958 
D) $16,867 
E) $19,650

Quizplus · Accepted Answer

Using the tax table, the tax liability for a married couple filing jointly with taxable income of $125,000 is calculated as follows:

- The first $19,400 is taxed at 10%, so the couple pays $1,940 in taxes on this amount. 
- The next $60,550 ($79,950 - $19,400) is taxed at 12%, so the couple pays $7,266 in taxes on this amount. 
- The next $44,200 ($124,150 - $79,950) is taxed at 22%, so the couple pays $9,724 in taxes on this amount.

Adding the three amounts together, the couple's total tax liability is $1,940 + $7,266 + $9,724 = $24,958. Therefore, the best choice is C.