Your firm currently has taxable income of $80,000. How much additional tax will
ID: 2815102 • Letter: Y
Question
Your firm currently has taxable income of $80,000. How much additional tax will you owe if you increase your taxable income by $21,200?
$8,268
$7,268
$6,888
$6,878
$7,208
$35,745
(Not sure if the tax rates have anything to do with this problem or my previous problem so I'm inserting it just incase. If it is needed then it goes with this problem)
The tax rates are as shown below:
Please show how you got the answer not just the answer. Thank you
Taxable Income Tax Rate $0 – 50,000 15 % 50,001 – 75,000 25 % 75,001 – 100,000 34 % 100,001 – 335,000 39 %Explanation / Answer
Correct option is > $7,268
Taxable Income
Tax Rate
Previous Income
Revised Income
Tax Previous
Tax Revised
Slabs
R
PI
RI
TP =PI x R
TR = RI x R
$0 – 50,000
15%
50000
50000
7500
7500
50,001 – 75,000
25%
25000
25000
6250
6250
75,001 – 100,000
34%
5000
25000
1700
8500
100,001 – 335,000
39%
0
1200
0
468
Total
80,000
101,200
15,450
22,718
Additional tax = Total of Tax Revised - Total of Tax Previous
Additional tax = 22718 - 15450
Additional tax = $7,268
Taxable Income
Tax Rate
Previous Income
Revised Income
Tax Previous
Tax Revised
Slabs
R
PI
RI
TP =PI x R
TR = RI x R
$0 – 50,000
15%
50000
50000
7500
7500
50,001 – 75,000
25%
25000
25000
6250
6250
75,001 – 100,000
34%
5000
25000
1700
8500
100,001 – 335,000
39%
0
1200
0
468
Total
80,000
101,200
15,450
22,718
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