Question

below is a graph of the murphys annual expenses. how much will the murphys pay in state/local taxes if their gross annual household income is $85,420?
murphys annual expenses
pie chart with categories: other (9%), federal taxes (24%), state/local taxes (10%), housing and household (27%), food (7%), medical care (5%), transportation (3%), recreation (4%), clothing (5%)
options:
a. $3,559.17
b. $8542.00
c. $20,500.80
d. $29,897.00

Explanation:

Step1: Identify Tax Percentage

From the pie chart, State/Local Taxes are 10% of total income.

Step2: Calculate Tax Amount

Total income is $85,420.00. Tax amount = 10% of $85,420.00 = \( 0.10 \times 85420 \) = $8,542.00.

Answer:

b. $8542.00