(3 pts) State income tax is based on taxable income, which is part of a person\'

Question

(3 pts) State income tax is based on taxable income, which is part of a person's tatal income. The tax owed to the state is calculated using the taxable income (not total income). In 2008, for a single person with a taxable income between $ 21000 and $ 190000, the tax owed was $ 828 plus 6.14% of the taxable income over $ 21000.

(a) Compute the tax owed by a lawyer whose taxable income is $ 43200.

(b) Consider a lawyer whose taxable income is 90% of her total income, $ x, where x is between $ 45000 and $ 170000. Write a formula for T(x), the taxable income.
T(x)=

(c) Write a formula for L(x), the amount of tax owed by the lawyer in part (b).
L(x)=

(d) Use L(x) to evaluate the tax liability for x=48000.
L(48000)=

Explanation / Answer

b) T(x) = 0.9 x

c) L(x) = 0.0614 * ( 0.9 x - 21000) + 828

d) L(48000) = 2191.08 $

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