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19 December, 15:23

This year, you owed $6,414.95 in federal income tax. If you are taxed at a net rate of 17%, what was your taxable income for this year? a. $109,054 b. $26,792 c. $44,867 d. $37,735

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  1. 19 December, 19:08
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    The solution to the problem is shown below:

    Federal Income Tax = $ 6,414.95

    Net rate = 17%

    Taxable income = ?

    We have to use the formula below in solving the taxable income:

    Federal Tax Income = Taxable Income x Net Rate

    $ 6,414.95 = Taxable Income * 0.17

    Taxable Income = $6,414.95/0.17

    Taxable Income = $ 37,735

    The answer is letter "D".
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