To determine the correct sentence about the taxes payable, let's break down Kim's taxable income of \[tex]$72,000 using the given tax brackets. We will analyze each tax bracket separately to find out how much tax Kim owes.
1. Tax Bracket 1: $[/tex]0 to [tex]$9,875 at 10%
- Taxable income within this bracket: $[/tex]9,875
- Tax calculation: [tex]$9,875 * 10% = $[/tex]987.50
2. Tax Bracket 2: [tex]$9,876 to $[/tex]40,125 at 12%
- Taxable income within this bracket: [tex]$40,125 - $[/tex]9,875 = [tex]$30,250
- Tax calculation: $[/tex]30,250 * 12% = [tex]$3,630
3. Tax Bracket 3: $[/tex]40,126 to [tex]$85,525 at 22%
- Taxable income within this bracket: $[/tex]72,000 - [tex]$40,125 = $[/tex]31,875
- Tax calculation: [tex]$31,875 * 22% = $[/tex]7,012.50
Next, we add up the taxes calculated for each bracket to find the total tax payable:
[tex]\[ \$987.50 + \$3,630 + \$7,012.50 = \$11,630 \][/tex]
Given this breakdown, the correct answer among the given choices is:
A. A part of the taxable income is taxed at 12%.
Explanation:
- Option A is true because income within the range [tex]$9,876 to $[/tex]40,125 is taxed at 12%.
- Option B is false because the tax payable is not simply 22% of the taxable income. The 22% rate only applies to the portion of income above $40,125.
- Option C is false because the average tax rate is not exactly 10%; it depends on the total tax divided by the total taxable income.
- Option D is false because the actual tax is not more than 22% of the taxable income when considering the graduated tax rates.
Therefore, Option A accurately describes part of how the taxable income is handled within the tax brackets.
