Answer:
a) $3,304.75
b) $23,510.75
Step-by-step explanation:
To use a tax table like this, you find the line applicable to the taxable income, then perform the calculation described on that line.
a)
The taxable income of $25000 is over $7825, but less than $31850. That means the second line of the table is used. It tells you the tax is $782.50 plus 15% of the amount over $7825. You find the amount over $7825 by subtracting $7825 from $25000.
tax = $728.50 +0.15×(25000 -7825) = $728.50 +0.15×17,175
tax = $728.50 +2576.25 = $3,304.75 . . . . tax on $25,000
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b)
For a taxable income of $105,000, the fourth line of the table is used. That tells you the tax computation is ...
tax = $15,698.75 +0.28×(105,000 -77,100)
tax = $23,510.75 . . . . tax on $105,000
