mutliple choice, question 10 (1 Viewer)

[mibiony]

this question was the one about the taxable income of $47000, the way i worked it out was this way:
47000-45001 = 1999
thus: 1999x0.40+$8310 = $9109.60 (B)
but looking at the other muliple choice answer everyone has they've answered C... so therefore everyone prolly did $2000x0.40+$8310 = $9110.00
but im confused... do u add the extra 1 at the 45001 or not? i've never been able to do these questions, so can someone explain it to me if u know wot ur talking about... ? i juz need 2 satisfy my curiousty now...

 

[Skeeta]

yeah because on the graph it says every $1 over 45000 not 45001 which is misleading becuae on the taxable income scale it starts at 45001

 

[Annegelic]

No u don't add an extra $1, because it's 40c PER $1 over $45,000... if that makes sense.

I did:
$8310 + (0.4 x 2000) = $9110.00
Answer was: C

 

[nova]

Yeh answer was C

Just to give you an example of why you don't add the $1.

Lets just say we're working with a taxable income of $4. Tax is $1.10 + 40c in every dollar over $3. Just by counting, we can see there is only $1 over $3. so tax would be $1.50. If you do $4-$3 then it comes to $1 aswell.. which leads to the same $1.50 tax.

 

[fordfalcon87]

-----c-----