Now consider another hypothetical tax code. Assume the tax rate on the first $15,000 of taxable income is 10% and the tax rate on any additional income is 18%. The standard deduction ($6,350) and personal exemption ($4,050) still apply. In other words: . For taxable income from $0 to $15,000, you pay 10% of your taxable income in taxes, plus • For taxable income above $15,000, you pay 18% of your taxable income. 1. If your total income before exemptions were $10,000 how much would you pay in taxes? 2. If your total income were $20,000 how much would you pay in taxes? 3. If your total income were $50,000 how much would you pay in taxes?
Now consider another hypothetical tax code. Assume the tax rate on the first $15,000 of taxable income is 10% and the tax rate on any additional income is 18%. The standard deduction ($6,350) and personal exemption ($4,050) still apply. In other words: . For taxable income from $0 to $15,000, you pay 10% of your taxable income in taxes, plus • For taxable income above $15,000, you pay 18% of your taxable income. 1. If your total income before exemptions were $10,000 how much would you pay in taxes? 2. If your total income were $20,000 how much would you pay in taxes? 3. If your total income were $50,000 how much would you pay in taxes?
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 47P: How do the all events and economic performance requirements apply to the following transactions by...
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Transcribed Image Text:Now consider another hypothetical tax code. Assume the tax rate on the first
$15,000 of taxable income is 10% and the tax rate on any additional income is 18%.
The standard deduction ($6,350) and personal exemption ($4,050) still apply.
In other words:
. For taxable income from $0 to $15,000, you pay 10% of your taxable income in
taxes, plus
. For taxable income above $15,000, you pay 18% of your taxable income.
1. If your total income before exemptions were $10,000 how much would you pay in
taxes?
2. If your total income were $20,000 how much would you pay in taxes?
3. If your total income were $50,000 how much would you pay in taxes?
4. Write a function to model the total tax paid, T(x), with a total income of x dollars.
5. Create a graph that shows taxes paid as a function of total income for the total
income between $0 and $60,000.
6. How many different slopes are on this graph?
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