Kala made
$20,000
in taxable income last year.
Suppose the income tax rate is
15%
for the first
$8500
plus
19%
for the amount over
$8500
.
How much must Kala pay in income tax for last year?
just try this IAS question 📝
How do u write
"1December 2015"
in 5 letters without using numbers ??
(Any genius 😎) answer please 😏
To calculate the income tax that Kala must pay for last year, we need to apply the income tax rate to different portions of their taxable income.
First, we determine the tax on the first $8,500 of income. The tax rate for this portion is 15%. So, the tax on the first $8,500 is:
$8,500 × 15% = $1,275
Next, we determine the tax on the amount over $8,500. In this case, the taxable income is $20,000 - $8,500 = $11,500. The tax rate for this portion is 19%. So, the tax on the amount over $8,500 is:
$11,500 × 19% = $2,185
Finally, we add the two taxes together to get the total income tax Kala must pay:
$1,275 + $2,185 = $3,460
Therefore, Kala must pay $3,460 in income tax for last year.