Sure, let's find out the amount of taxes owed on a taxable income of [tex]$38,520 using the marginal tax rate chart step-by-step.
1. Determine taxable income within the first bracket ($[/tex]0 - [tex]$10,275):
- Income in this bracket: $[/tex]10,275
- Tax rate: 10%
- Tax for this portion: [tex]$10,275 * 0.10 = $[/tex]1,027.50
2. Determine taxable income within the second bracket ([tex]$10,276 - $[/tex]41,175):
- Income within this bracket: [tex]$38,520 - $[/tex]10,275 = [tex]$28,245
- This income is within the second bracket’s limit.
- Tax rate: 12%
- Tax for this portion: $[/tex]28,245 * 0.12 = [tex]$3,389.40
3. Adding all the taxes:
- Total tax: $[/tex]1,027.50 (first bracket) + [tex]$3,389.40 (second bracket)
- Total tax owed: $[/tex]4,416.90
Hence, the amount of taxes owed on a taxable income of [tex]$38,520 is \$[/tex]4,416.90. Thus, the correct option is:
[tex]\[
\$ 4,416.90
\][/tex]
