Question

Shen made $25,000 in taxable income last year.

Suppose the income tax rate is 10% for the first $7000 plus 15% for the amount over $7000.
How much must Shen pay in income tax for last year?

Answer 1

3400

Explanation:

25000

- 7000 x .10= 700 calculate 10% tax

——————

=18000 x .15 =2700 calculate tax over 7000 at 15%

total tax. = 3400