To solve the problem of determining John's tax based on his taxable income of [tex]$31,000, we need to reference the corresponding tax brackets and rates. Here's the step-by-step breakdown:
1. Identify the tax brackets and rates:
- First $[/tex]10,000 at a rate of 10%
- Next [tex]$20,000 at a rate of 15%
- Beyond $[/tex]30,000 at a rate of 20%
2. Break down John's income according to these brackets:
- The first [tex]$10,000 falls in the 10% tax rate bracket.
- The next $[/tex]20,000 (which brings the total to [tex]$30,000) falls in the 15% tax rate bracket.
- The remaining income ($[/tex]31,000 - [tex]$30,000 = $[/tex]1,000) falls in the 20% tax rate bracket.
3. Calculate the tax for each segment of income:
- For the first [tex]$10,000: \( 10,000 \times 0.10 = 1,000 \)
- For the next $[/tex]20,000: [tex]\( 20,000 \times 0.15 = 3,000 \)[/tex]
- For the remaining [tex]$1,000: \( 1,000 \times 0.20 = 200 \)
4. Sum the taxes from all segments:
- Total tax = $[/tex]1,000 (first segment) + [tex]$3,000 (second segment) + $[/tex]200 (third segment)
- Total tax = [tex]$1,000 + $[/tex]3,000 + [tex]$200 = $[/tex]4,200
Therefore, John's tax with a taxable income of [tex]$31,000 would be:
$[/tex]4,200.00
This matches the given answer, and thus his tax amount is not among the multiple-choice options. However, according to the calculations based on provided tax brackets, $4,200.00 is the correct tax for John.
