Question

your friends job pays $10 per hour, and he works 40 hours per week. his tax rate is 20 percent. assuming he works 50 weeks of the year, his yearly net income is$4,000$16,000$20,000$40,000question 10 (multiple choice worth 4 points)which tax is paid to a third party?directflatincomeindirect

Explanation:

Step1: Calculate gross annual income

First, find weekly earnings: $10 \times 40 = 400$. Then annual gross income: $400 \times 50 = 20000$

Step2: Calculate annual tax amount

Tax is 20% of gross income: $0.20 \times 20000 = 4000$

Step3: Calculate net annual income

Subtract tax from gross income: $20000 - 4000 = 16000$

Indirect taxes are collected by an intermediary (third party) such as a retailer, who then pays the tax to the government, rather than the taxpayer paying directly. Direct taxes are paid directly to the government by the taxpayer, flat taxes are a single-rate tax system, and income tax is a type of direct tax.

Answer:

$16,000$

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