Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her federal taxable income. This year, she paid $15,449.60 in federal income tax. How much did Agnes pay in state income tax?
a.
$573.36
b.
$4,387.69
c.
$1,170.04
d.
$2,040.00
Let x be Agnes's federal taxable income.
The federal income tax she paid is 0.284 * x = $15,449.60.
So, x = $15,449.60 / 0.284 = $54,371.83.
Agnes paid $54,371.83 * 0.0375 = $2,038.80 in state income tax.
Therefore, Agnes paid $2,038.80 ≈ $2,040.00 in state income tax.
The answer is d. $2,040.00.
Let's denote Agnes' federal taxable income as X.
According to the given information, Agnes pays federal income tax equal to 28.4% of her federal taxable income. Therefore, her federal income tax can be expressed as 0.284 * X.
We also know that Agnes pays state income tax equal to 3.75% of her federal taxable income. Thus, her state income tax can be expressed as 0.0375 * X.
We are given that Agnes paid $15,449.60 in federal income tax. We can set up the equation:
0.284 * X = $15,449.60
To solve for X, we divide both sides of the equation by 0.284:
X = $15,449.60 / 0.284 ≈ $54,428.8732
Now we can calculate Agnes' state income tax:
0.0375 * $54,428.8732 ≈ $2,040.33
Therefore, Agnes paid approximately $2,040.33 in state income tax.
The closest answer option is d. $2,040.00.