Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $20,000 owe?
A)-$8,000
B)-$2,400
C)$0
D)$2,400

Question

Quizplus · Accepted Answer

Using the formula, we can find the tax liability:

Taxes owed = 0.28*$20,000 - $8,000 = $2,400

Therefore, the family would owe $2,400 in taxes. The answer is choice (D).

Suppose the Government Used the Following Formula to Compute a Family's