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(52784)   (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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Is everything clear to you in my solution ?
If not, then let me know, by referring to the problem's ID number 1147345.
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