Let's determine Kim's tax payable step by step according to the tax brackets provided:
1. First Tax Bracket: [tex]$0$[/tex] to [tex]$9,875$[/tex] at [tex]$10\%$[/tex]
- The maximum income in this bracket is [tex]$9,875.
- Tax payable in this bracket: \( \$[/tex]9,875 \times 0.10 = \[tex]$987.50 \)
2. Second Tax Bracket: $[/tex]9,876[tex]$ to $[/tex]40,125[tex]$ at $[/tex]12\%[tex]$
- The maximum income in this bracket is $[/tex]30,249 (i.e., [tex]$40,125 - $[/tex]9,875)[tex]$.
- Tax payable in this bracket: \( \$[/tex]30,249 \times 0.12 = \[tex]$3,629.88 \)
3. Third Tax Bracket: $[/tex]40,125[tex]$ to $[/tex]85,525[tex]$ at $[/tex]22\%[tex]$
- Kim's taxable income of $[/tex]72,000 falls within this bracket.
- Income taxed in this bracket: [tex]\( \$72,000 - \$40,125 = \$31,875 \)[/tex]
- Tax payable in this bracket: [tex]\( \$31,875 \times 0.22 = \$7,012.50 \)[/tex]
Now, we will add up the taxes from each bracket to find the total tax payable:
[tex]\[
\text{Tax Payable} = \$987.50 + \$3,629.88 + \$7,012.50 = \$11,630.00
\][/tex]
True statement:
B. A part of the taxable income is taxed at [tex]$12 \%$[/tex].
