ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
bartleby

Videos

Question
Book Icon
Chapter 12A, Problem 1P
To determine

(a)

The federal tax to be paid.

Expert Solution
Check Mark

Answer to Problem 1P

Tax amount is $500.

Explanation of Solution

Given:

Taxable income is $5000.

Concept used:

Tax slab rates for single taxpayers are as follows.

Taxable income over But not over Tax Of the amount over
$0 $8700 10% $0
$8700 $35350 $870+15% $8700
$35350 $85650 $4867.50+25% $35350
$85650 $178650 $17442.50+28% $85650
$178650 $388350 $43482.50+33% $178650
$388350 $112683.50+35% $388350

Table-(1).

Calculation:

Calculate the federal income tax payable from Table-(1).

T=$5000×10%=$500

Here, the tax amount is T.

Conclusion:

Tax amount is $500.

To determine

(b)

The federal tax to be paid.

Expert Solution
Check Mark

Answer to Problem 1P

Tax amount is $2565.

Explanation of Solution

Given:

Taxable income is $20000.

Calculation:

Calculate the federal income tax payable from Table-(1).

T=$870+15%($20000$8700)=$2565.

Conclusion:

Tax amount is $2565.

To determine

(c)

The federal tax to be paid.

Expert Solution
Check Mark

Answer to Problem 1P

Tax amount is $20060.5.

Explanation of Solution

Given:

Taxable income is $95000.

Calculation:

Calculate the federal income tax payable from Table-(1).

T=$17442.50+28%($95000$85650)=$20060.5.

Conclusion:

Tax amount is $20060.5.

To determine

(d)

The federal tax to be paid.

Expert Solution
Check Mark

Answer to Problem 1P

Tax amount is $100028.

Explanation of Solution

Given:

Taxable income is $350,000.

Calculation:

Calculate the federal income tax payable from Table-(1).

T=$43482.50+33%($350,000$178650)=$100028.

Conclusion:

Tax amount is $100028.

To determine

(e)

The federal tax to be paid.

Expert Solution
Check Mark

Answer to Problem 1P

Tax amount is $326761.

Explanation of Solution

Given:

Taxable income is $1million.

Calculation:

Calculate the federal income tax payable from Table-(1).

T=$112683.50+35%($1,000,000$388350)=$326761.

Conclusion:

Tax amount is $326761.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education
The INCOME STATEMENT Explained (Profit & Loss / P&L); Author: Accounting Stuff;https://www.youtube.com/watch?v=hrSUq4wcd0g;License: Standard Youtube License