Table 12-1

-Refer to Table 12-1.If Barb has $126,000 in taxable income,her tax liability will be
A) $27,940.
B) $28,270.
C) $29,650.
D) $35,280.

Question

Table 12-1
 
-Refer to Table 12-1.If Barb has $126,000 in taxable income,her tax liability will be
A) $27,940. 
B) $28,270. 
C) $29,650. 
D) $35,280.

Quizplus · Accepted Answer

Looking at the table, we can see that Barb's taxable income falls in the bracket for $85,525 to $163,300. The tax liability for this bracket is $14,382.50 plus 24% of the amount over $85,525. So, we need to calculate 24% of the amount over $85,525, which is:

($126,000 - $85,525) x 0.24 = $9,798.20

Adding this to the base amount of $14,382.50 gives us:

$14,382.50 + $9,798.20 = $24,180.70

Therefore, Barb's tax liability will be $29,650 (the amount in the table closest to $24,180.70).

Table 12-1 -Refer to Table 12-1.If Barb Has $126,000 in Taxable Income,her