Question

question 14
1 pts
use the table below for the question:
on taxable income\tthe federal tax rate is
up to $7,000\t10%
from $7,000 to $30,000\t15
from $30,000 to $50,000\t25
if morgan has $40,000 in taxable income, her federal tax liability will be...
2905
4000
10000
6650

Explanation:

Step1: Calculate tax on first bracket

$\$7,000 \times 10\% = \$700$

Step2: Calculate tax on second bracket

$(\$30,000 - \$7,000) \times 15\% = \$23,000 \times 0.15 = \$3,450$

Step3: Calculate tax on third bracket

$(\$40,000 - \$30,000) \times 25\% = \$10,000 \times 0.25 = \$2,500$

Step4: Sum all tax amounts

$\$700 + \$3,450 + \$2,500$

Answer:

6650