John and Loretta Smith are in the 28% tax bracket.Their joint taxable income is $134,899.If the first $16,050 is taxed at 10%,with the remainder at 28%,how much tax will they owe?

Question

Quizplus · Accepted Answer

The amount taxed at 10% is $16,050. The amount taxed at 28% is $134,899 - $16,050 = $118,849.

The tax on the first $16,050 is $16,050 x 0.10 = $1,605.

The tax on the remaining $118,849 is $118,849 x 0.28 = $33,277.72.

Therefore, the total tax owed is $1,605 + $33,277.72 = $34,882.72.

Thus, the best choice is C.

John and Loretta Smith Are in the 28% Tax Bracket