Question

Use the image to answer the question.

Quadrant 1 of a coordinate plane shows the x axis labeled taxable income and the y axis labeled tax rate.
▶Click for Long Desc

The graph shows the tax rate for differing levels of income.

Angela earns $50,000 a year, and wants to determine the amount of tax she will pay.

Which explanation is correct?

(1 point)

Angela pays a tax rate of 10% on the first $9,275 of income, a tax rate of 15% on the next $28,375 of income, and a tax rate of 25% on the her remaining income.

Angela pays a tax rate of 10% on the first $9,275 of income, a tax rate of 15% on the next $37,650 of income, and a tax rate of 25% on the her remaining income.

Angela pays a tax rate of 25% on her income.

Angela pays a tax rate of 15% on $37,650 of income, and a tax rate of 25% on the her remaining income.

Answer 1

First option.

Explanation: The brackets are 10% up to $9,275, 15% from $9,275 to $37,650 (which is $37,650 − $9,275 = $28,375 of income), and 25% above $37,650. For $50,000, Angela pays 10% on the first $9,275, 15% on the next $28,375, and 25% on the remaining $12,350.