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Question

Quadrant 1 of a coordinate plane shows the x axis labeled taxable income and the y axis labeled tax rate.

A tax preparer needs to explain tax rates to a client. Which of the following best interprets the piecewise linear function for a tax client who earns $54,000?

(1 point)
Responses

The client will be taxed at a rate of 24% since their taxable income is within the third step of the function.
The client will be taxed at a rate of 24% since their taxable income is within the third step of the function.

The client will be taxed at a rate of 25% since their taxable income is within the third step of the function.
The client will be taxed at a rate of 25% since their taxable income is within the third step of the function.

The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $37,650. They will be taxed at a rate of 25% for $54,000.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $37,650. They will be taxed at a rate of 25% for $54,000.

The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.
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Answer 1

To determine the correct interpretation of the piecewise linear function for a tax client who earns $54,000, we should consider the tax brackets commonly used in the United States (as a reference, since the specific rates and brackets can vary by year). Based on the information provided in the responses, we can deduce the following:

1. The client will pay 10% on the income up to the first tax threshold (which is typically around $9,275).
2. The client will pay 15% on the income within the next bracket (usually from $9,276 to around $37,650).
3. The remainder of the income will typically be taxed at the next highest rate (in this case, 25%).

Given that the taxable income is $54,000:

• The first $9,275 will be taxed at 10%.
• The income from $9,276 to $37,650 will be taxed at 15%. (This is approximately $28,375 which is the difference between these amounts: $37,650 - $9,275 = $28,375).
• The income from $37,651 to $54,000 will be taxed at 25%. The amount in this range is $54,000 - $37,650 = $16,350.

Thus, the best interpretation of the tax rates for this client is:

The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.

Therefore, the correct response is:

The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.