Answer:
Option (a) $11,989
Explanation:
Data provided in the question:
Taxable income = $79,280
Now,
we should know,
Tax rate Taxable income Tax owed
10% $0 to $13,600 10% of taxable income
12% $13,601 to $51,800 $1,360 plus 12% of the amount over $13,600
22% $51,801 to $82,500 $5,944 plus 22% of the amount over 51,800
Since,
Income of $79,280 lies in the taxable income bracket of $51,801 to $82,500
Therefore,
Income tax for Marks = $5,944 + 22% of ($79,280 - $51,800 )
= $5,944 + ( 0.22 × 27480 )
= $5,944 + $6,045.6
= $11,989.6 ≈ $11,989
Hence,
Option (a) $11,989
