In one state, the income tax law provides for a tax of 1% on the first $1,000 of taxable income and 2% on the second $1,000 of taxable income. Mr.

Question

In one state, the income tax law provides for a tax of 1% on the first $1,000 of taxable income and 2% on the second $1,000 of taxable income. Mr.
Cable has a taxable income of $1,850. His income tax is:

Bot · Answer

The first $1,000 of taxable income is taxed at a rate of 1%, which equals $10. The remaining $850 of taxable income falls in the second tax bracket and is taxed at a rate of 2%, which equals $17. Therefore, Mr. Cable's income tax is $10 + $17 = $27.