Question

Charleen, a single female, earned an annual salary of $57,500. After tax deductions for her one exemption, her monthly taxable wages were $4,483.33. How much wasdeducted from each paycheck for federal income tax? Note: Percentage method for calculation: For taxable monthly wages over $3,050, but not over $7,142 = $395.55, plus25% of excess over $3,050.$736.85$744.33$753.88$768.90None of these choices are correct.

Answer 1

She has a taxable wage of $4,483.33.

The tax, given the calculation method, is equal to $395.55 plus 25% on the excess over $3,050.

We can define x as the taxable wage. Then, assuming x > 3050, the tax T can be written as:

$T=395.55+0.25\cdot(x-3050)$

In this case, x = 4483.33, so T is:

$\begin{gathered} T=395.55+0.25\cdot(x-3050) \\ T=395.55+0.25(4483.33-3050) \\ T=395.55+0.25\cdot1433.33 \\ T=395.55+358.33 \\ T=753.88 \end{gathered}$

Answer: $753.88