To determine the amount of taxes owed on a taxable income of \[tex]$38,520, we will use the marginal tax rate chart provided and calculate the tax step-by-step according to the tax brackets:
1. First Bracket: \$[/tex]0 - \[tex]$10,275 (10%)
- Taxable income in this bracket = \$[/tex]10,275
- Tax = \[tex]$10,275 * 10% = \$[/tex]1,027.50
2. Second Bracket: \[tex]$10,276 - \$[/tex]41,175 (12%)
- Taxable income in this bracket = \[tex]$38,520 - \$[/tex]10,275 = \[tex]$28,245
- Since \$[/tex]28,245 is still within the second bracket which goes up to \[tex]$41,175, we use the middle value.
- Tax on this amount = \$[/tex]28,245 * 12% = \[tex]$3,389.40
3. Total taxes owed:
- Add the taxes from the two brackets:
- \$[/tex]1,027.50 (first bracket) + \[tex]$3,389.40 (second bracket) = \$[/tex]4,416.90
Therefore, the total amount of taxes owed on a taxable income of \[tex]$38,520 is \$[/tex]4,416.90.
So, the correct answer is:
[tex]\[\$ 4,416.90\][/tex]
