Mr.Allen has a wife and 3 kids.His monthly salary during the year 2007 was $7500.
a)Calculate his annual salary $90,000 is this right?
Information on calculating income tax for 2007 is shown in the table shown
Allowances:Husband-$10,000,Wife-$5000, Each child-$2500
Tax rate-22% of the taxable income
Taxable income = Annual Salary-Total Allowances.
b)Calculate Mr.Allen's TOTAL allowances for 2007-22,500 is this right?
c)Calculate Mr.Allen's income tax for 2007 90,000-22,500=67,500 is this right?
what percentage of Mr.Allen's annual salary was paid in come tax? how do i work this?
Whoops! He didn't pay $67,500 in taxes!
He was taxed on $67,500.
67,500 * 0.22 = $14,850 was the amount he paid in taxes.
14,850 / 90,000 = 0.165 = 16.5%
He paid 16.5% of his salary in taxes.
a) To calculate Mr. Allen's annual salary, we need to multiply his monthly salary by the number of months in a year. Since he earns $7500 per month, his annual salary would be:
Annual Salary = Monthly Salary x 12
= $7500 x 12
= $90,000
So, $90,000 is indeed the correct annual salary.
b) To calculate Mr. Allen's total allowances for 2007, we need to add up the allowances for himself, his wife, and his three children. Given that:
- Husband's allowance = $10,000
- Wife's allowance = $5,000
- Each child's allowance = $2,500 (3 children)
Total Allowances = Husband's allowance + Wife's allowance + (Each child's allowance x Number of children)
= $10,000 + $5,000 + ($2,500 x 3)
= $10,000 + $5,000 + $7,500
= $22,500
So, $22,500 is indeed the correct total allowances for 2007.
c) To calculate Mr. Allen's income tax for 2007, we need to subtract the total allowances from his annual salary. Given that:
Taxable Income = Annual Salary - Total Allowances
= $90,000 - $22,500
= $67,500
So, $67,500 is indeed the correct taxable income for 2007.
To calculate the percentage of Mr. Allen's annual salary that was paid in income tax, we need to divide the income tax amount by his annual salary and then multiply by 100.
Percentage of Income Tax = (Income Tax / Annual Salary) x 100
= ($67,500 / $90,000) x 100
= 75%
Therefore, 75% of Mr. Allen's annual salary was paid in income tax.
a) To calculate Mr. Allen's annual salary, you need to multiply his monthly salary by the number of months in a year. In this case, Mr. Allen's monthly salary is $7500, so his annual salary would be:
$7500/month x 12 months = $90,000/year
Therefore, the calculation is correct. Mr. Allen's annual salary for 2007 is $90,000.
b) To calculate Mr. Allen's total allowances for 2007, you need to sum up the allowances for the husband, wife, and each child. According to the information given, the allowances are as follows:
Husband = $10,000
Wife = $5,000
Each child = $2,500 x 3 = $7,500
Total allowances = Husband's allowance + Wife's allowance + Each child's allowance
Total allowances = $10,000 + $5,000 + $7,500 = $22,500
Therefore, the calculation is correct. Mr. Allen's total allowances for 2007 is $22,500.
c) To calculate Mr. Allen's income tax for 2007, you need to subtract his total allowances from his annual salary. According to the information given:
Annual salary = $90,000
Total allowances = $22,500
Taxable income = Annual salary - Total allowances
Taxable income = $90,000 - $22,500 = $67,500
Therefore, the calculation is correct. Mr. Allen's taxable income for 2007 is $67,500.
To calculate the percentage of Mr. Allen's annual salary that was paid in income tax, you need to divide the income tax by the annual salary and multiply by 100:
Percentage of income tax = (Income tax / Annual salary) x 100
Percentage of income tax = ($67,500 / $90,000) x 100 = 75%
Therefore, 75% of Mr. Allen's annual salary was paid in income tax.