When calculating his income tax an accountant realized that his federal tax was 40% of his income after his provincial tax was paid, and that his provincial tax was 25% of his income after his federal tax was paid. If the accountant's income before taxes amounted to $180000, how much federal tax did he pay?
I bet yall are in SMS
income: x
federal tax: f
provincial tax: p
f = .40(x-p)
p = .25(x-f)
so, f = .40(x - .25(x-f))
so, solving that for f, you get
f = 1/3 x = 60000
lmao contortions grade ten for sms
Yessir,
never do the questions always search it up
To find out how much federal tax the accountant paid, we need to follow a step-by-step approach:
Step 1: Let's assume the accountant's income before taxes is represented by "x."
Step 2: According to the given information, the federal tax is 40% of the income after provincial tax is paid. Therefore, the income after provincial tax is (100% - 25%) of x = 75% of x.
Step 3: The federal tax can be calculated by multiplying the income after provincial tax by the federal tax rate. So the federal tax paid is 40% of 75% of x.
Step 4: Simplifying further, we get 0.4 * 0.75 * x.
Step 5: We know that the accountant's income before taxes amounts to $180,000. Therefore, we can set up an equation:
0.4 * 0.75 * x = $180,000.
Step 6: To find the value of x, we need to isolate it. Divide both sides of the equation by (0.4 * 0.75):
x = $180,000 / (0.4 * 0.75).
Step 7: Calculate the value of x:
x = $180,000 / 0.3.
x = $600,000.
Step 8: Now that we have the value of x, the income before taxes, we can calculate the federal tax paid. Since the federal tax rate is 40% of the income after provincial tax, the federal tax paid is 40% of $600,000:
Federal tax = 0.4 * $600,000.
Federal tax = $240,000.
Therefore, the accountant paid $240,000 in federal tax.