Refer to Scenario 19.2. When this person earns $60,000, her tax payment would be

A) $4,000.
B) $7,200
C) $12,000.
D) indeterminate from this information.

Question

Refer to Scenario 19.2. When this person earns $60,000, her tax payment would beA)  $4,000.B)  $7,200C)  $12,000.D)  indeterminate from this information.

Roxana Travieso · Accepted Answer

Final Answer : B, Explanation :  The individual initially pays $3,200 on the first $40,000. For the additional $20,000 earned (making it $60,000), the tax at a 20% marginal rate would be $4,000 ($20,000 * 20%). Adding this to the initial $3,200 gives a total tax payment of $7,200.

Refer to Scenario 19.2. When this person earns $60,000, her tax payment would be

A) $4,000.
B) $7,200
C) $12,000.
D) indeterminate from this information.

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