the reed family makes $71,800 annually and has 2 children. the income tax rate is 1.7% and there is a $3,000…

the reed family makes $71,800 annually and has 2 children. the income tax rate is 1.7% and there is a $3,000 exemption for each person. true or false: the state income tax for the reed family is $3,810.60.\ntrue\nfalse

the reed family makes $71,800 annually and has 2 children. the income tax rate is 1.7% and there is a $3,000 exemption for each person. true or false: the state income tax for the reed family is $3,810.60.\ntrue\nfalse

Answer

Answer:

False

Explanation:

Step1: Calculate total exemptions

Total exemptions = $3000 × 4 (2 parents + 2 children) = $12000

Step2: Compute taxable income

Taxable income = $71800 - $12000 = $59800

Step3: Calculate income tax

Income tax = $59800 × 0.07 = $4186

Step4: Compare with given amount

$4186 ≠ $3810.60, so the statement is false.