Mauro just won [tex]\$1,000,000[/tex] from the lottery! Despite his excitement in winning a tremendous amount of money, his brother (who is an accountant) warns him not to spend it all at once and hands him this tax rate schedule for single taxpayers.

\begin{tabular}{|c|c|}
\hline
Taxable Income & Federal Tax \\
\hline
\$0 - \[tex]$7,825 & 10\% of amount \\
\hline
\$[/tex]7,825.01 - \[tex]$31,850 & \$[/tex]725.50 plus 15\% of amount over \[tex]$7,825 \\
\hline
\$[/tex]31,850.01 - \[tex]$77,100 & \$[/tex]4,386.25 plus 25\% of amount over \[tex]$31,850 \\
\hline
\$[/tex]77,100.01 - \[tex]$160,850 & \$[/tex]15,698.75 plus 28\% of amount over \[tex]$77,100 \\
\hline
\$[/tex]160,850.01 - \[tex]$349,700 & \$[/tex]39,148.75 plus 33\% of amount over \[tex]$160,850 \\
\hline
\$[/tex]349,700.01 and up & \[tex]$101,469.25 plus 35\% of amount over \$[/tex]349,700 \\
\hline
\end{tabular}

Using this chart, a taxpayer who makes [tex]\$58,000[/tex] annually (line 3) will have to pay [tex]\$4,386.25[/tex] plus 25\% of the difference of [tex]58,000[/tex] and [tex]31,850[/tex] or [tex]\[tex]$4,386.25 + (0.25 \cdot (58,000 - 31,850)) = \$[/tex]10,923.75[/tex].

Before winning the lottery, Mauro's annual income was [tex]\$34,500[/tex]. Use the chart to determine Mauro's federal tax before winning the lottery and after winning the lottery.

How much extra does he have to pay in federal taxes because he won the lottery?

A. [tex]\$5,048.75[/tex]

B. [tex]\$336,100.50[/tex]

C. [tex]\$341,149.25[/tex]