agnes pays state income tax equal to 3.75% of her federal taxable income. she pays federal income tax equal…

agnes pays state income tax equal to 3.75% of her federal taxable income. she pays federal income tax equal to 28.4% of her federal taxable income. this year, she paid $15,449.60 in federal income tax. how much did agnes pay in state income tax?\na. $573.36\nb. $4,387.69\nc. $1,170.04\nd. $2,040.00\nplease select the best answer from the choices provided

agnes pays state income tax equal to 3.75% of her federal taxable income. she pays federal income tax equal to 28.4% of her federal taxable income. this year, she paid $15,449.60 in federal income tax. how much did agnes pay in state income tax?\na. $573.36\nb. $4,387.69\nc. $1,170.04\nd. $2,040.00\nplease select the best answer from the choices provided

Answer

Answer:

c. $$1,170.04$

Explanation:

Step1: Find federal taxable income

Let federal taxable income be $x$. We know that $28.4%$ of $x$ is $$15,449.60$, so $0.284x = 15449.60$. Then $x=\frac{15449.60}{0.284}= 54400$.

Step2: Calculate state income tax

State income tax is $3.75%$ of federal taxable income. So state - income tax $=0.0375\times54400 = 1170.04$.