Question

Order the following steps to explain the correct process for calculating net income.

Reorder answers
1.Subtract the tax withholdings from the gross income.
Reorder answers
2.Convert the tax rate to a decimal.
Reorder answers
3.Multiply the tax, as a decimal, with the gross income.

Answer 1

Convert the tax rate to a decimal so 8.75% becomes 0.875

Multiply the tax, as a decimal, with the gross income so 1,000 x 0.0875 = 87.5

Subtract the tax withholdings from the gross income 1000 - 87.5 = 912.5

Explanation: