Question

1. state income tax rate: 5%

amount paid: $2500
what is the income?

Explanation:

Step1: Recall tax formula

The formula for tax is \( \text{Tax Amount} = \text{Income} \times \text{Tax Rate} \). We need to solve for Income, so rearrange the formula to \( \text{Income} = \frac{\text{Tax Amount}}{\text{Tax Rate}} \).

Step2: Substitute values

Given Tax Amount = $2500 and Tax Rate = 5% = 0.05. Substitute into the formula: \( \text{Income} = \frac{2500}{0.05} \).

Step3: Calculate the result

\( \frac{2500}{0.05} = 50000 \).

Answer:

The income is $50000.