Answer :
The correct expression for computing the amount of taxes owed for a person with $215,000 in taxable income in 2014 would be option 3: [tex]\(0.28 \times 215,000\)[/tex], which equals $60,200.
To compute the amount of taxes owed, you need to multiply the taxable income by the applicable tax rate. The given options represent different tax rates.
Let's evaluate each option:
1. [tex]\(0.15 \times 215,000\)[/tex] - This represents a tax rate of 15%. The calculated amount would be [tex]\(0.15 \times 215,000 = 32,250\)[/tex].
2. [tex]\(0.25 \times 215,000\)[/tex] - This represents a tax rate of 25%. The calculated amount would be [tex]\(0.25 \times 215,000 = 53,750\)[/tex].
3. [tex]\(0.28 \times 215,000\)[/tex] - This represents a tax rate of 28%. The calculated amount would be [tex]\(0.28 \times 215,000 = 60,200\)[/tex] .
4. [tex]\(0.35 \times 215,000\)[/tex] - This represents a tax rate of 35%. The calculated amount would be [tex]\(0.35 \times 215,000 = 75,250\)[/tex].
Therefore, the correct expression for computing the amount of taxes owed for a person with $215,000 in taxable income would be option 3: [tex]\(0.28 \times 215,000\)[/tex], which equals $60,200.
Q- Which of the following expressions would correctly compute the amount of taxes owed by a person with $215,000 in taxable income in 2014?
1 ) 0.15 * 215,000
2) 0.25 * 215,000
3) 0.28 * 215,000
4) 0.35 * 215,000
Final answer:
Without the specific tax bracket structure for the year 2014 for taxable incomes at the level of $215,000, it is not possible to determine the correct amount of taxes owed from the options provided. Marginal tax rates apply only to specific income ranges and a progressive tax system requires knowing all applicable tax brackets.
option 3 is correct answer.
Explanation:
To correctly compute the amount of taxes owed by a person with $215,000 in taxable income in 2014, it is essential to understand the concept of marginal tax rates. In the provided information, it is explained that the marginal tax rate is the rate of tax applied to the last dollar of income. For example, if a single taxpayer with a yearly income of $35,000 is taxed at 10% for income from $0 to $9,075, at 15% for income from $9,075 to $36,900, and at 25% for income beyond $36,900, then their marginal tax rate would be the rate they pay on the last dollar they earn, in this case, 15%. However, taxable income of $215,000 in 2014 does not fit into the brackets provided in the examples.
If the person has a taxable income of $215,000, and considering the progressiveness of the tax brackets, they would fall into a higher tax bracket not listed in the examples, potentially paying a higher rate than 25%. Without the exact tax bracket information for incomes of $215,000 in 2014, we cannot definitely choose an option from 1 to 4. A progressive tax system like the one described requires knowing the full tax bracket structure to calculate the taxes owed correctly.
