Below is a graph of the Murphys’ annual expenses. If the Murphys’ gross annual household income is $85,420, how much will they pay in federal taxes?
A circle graph titled Murphy's Annual Expenses. Federal taxes, 24 percent; State/local taxes, 10 percent; Housing and household, 27 percent; Food, 7 percent; Medical care, 5 percent; Transportation, 9 percent; Recreation, 4 percent; Clothing, 5 percent; Other, 9 percent.
a.
$3,559.17
b.
$8,542.00
c.
$20,500.80
d.
$29,897.00
To find the amount the Murphys will pay in federal taxes, we need to multiply their gross annual household income by the percentage allocated for federal taxes.
Federal taxes = $85,420 * 0.24 = $20,500.80
Therefore, the answer is c. $20,500.80
To calculate the amount the Murphys will pay in federal taxes, you need to find 24% of their gross annual household income. Here are the steps:
1. Multiply the gross annual household income by the percentage of federal taxes:
$85,420 * 24% = $20,500.80
Therefore, the Murphys will pay $20,500.80 in federal taxes.
The correct answer is c. $20,500.80.