question 4 out of 5\nkatie has taxable income of $45,000. she is single and her tax rates are 10% on the…

question 4 out of 5\nkatie has taxable income of $45,000. she is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder. what is katies tax liability?\ntype your answer here

question 4 out of 5\nkatie has taxable income of $45,000. she is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder. what is katies tax liability?\ntype your answer here

Answer

Explanation:

Step1: Calculate tax on first - part

The first $7000 of taxable income is taxed at 10%. So the tax on this part is $7000\times0.10 = 700$.

Step2: Calculate the amount in the second - tax bracket

The amount of income in the second - tax bracket ($15%$ rate) is $28400 - 7000=21400$. The tax on this part is $21400\times0.15 = 3210$.

Step3: Calculate the amount in the third - tax bracket

The amount of income in the third - tax bracket ($25%$ rate) is $45000-(28400)=16600$. The tax on this part is $16600\times0.25 = 4150$.

Step4: Calculate total tax

The total tax is the sum of the taxes from each bracket, so $700 + 3210+4150=8060$.

Answer:

$8060$