SOLUTION: For an income over $10,000 a state charges a fixed tax of $300 plus 6.5% of the income in excess of $10,000. I need to calculate the income tax for an income of $80,000 and deter

Question 1147345: For an income over $10,000 a state charges a fixed tax of $300 plus 6.5% of the income in excess of $10,000.
I need to calculate the income tax for an income of $80,000 and determine the amount of income if $7,508.50 was the amount paid in taxes. Can you give guidance on the correct format to complete these.

Answer by ikleyn(52785) (Show Source): You can put this solution on YOUR website!
.

1. The income tax for an income of $80,000

Take fixed tax of $300, and add to it 6.5% of excess of $80,000 over $10,000.


The excess is $80,000 - $10,000 = $70,000.


The 6.5% of it is  0.065*70000 = 4550.


So, your answer is  $300 + $4550 = $4850.

2. Determine the amount of income if $7,508.50 was the amount paid in taxes

$7,508.50 is greater than $300.


It means that the income exceeds $10,000.


The difference  7,508.50 dollars MINUS 300 dollars = 7,208.50  is 6.5%  od the exceed over $10,000.


Hence, this exceed is   = 110900 dollars.


Thus the total income is  $10,000 + $110900 = $120900.

Solved.

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