Table 12-11
-Refer to Table 12-11. If Peggy has taxable income of $43,000, her tax liability is
A)$1,920.
B)$4,400.
C)$6,320.
D)$8,175.

Question

Table 12-11 
-Refer to Table 12-11. If Peggy has taxable income of $43,000, her tax liability is
A)$1,920. 
B)$4,400. 
C)$6,320. 
D)$8,175.

Quizplus · Accepted Answer

Based on the table, Peggy's taxable income falls between $38,700 and $82,500, which means her tax liability will be $4,453.50 plus 22% of the amount over $38,700.

$43,000 - $38,700 = $4,300
$4,453.50 + 22% of $4,300 = $6,320

Therefore, Peggy's tax liability is $6,320. Choice C is the correct answer.

Table 12-11 -Refer to Table 12-11. If Peggy Has Taxable Income of Taxable