Question

1. state income tax rate: 5%

amount paid: $2500
what is the income?

1. state income tax rate: 4.5%

amount paid: $1350
what is the income?

Explanation:

Step1: Recall the tax formula

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

Step2: Solve for question 5

For question 5, the tax amount (amount paid) is $2500 and the tax rate is 5% or 0.05 in decimal. Substitute into the formula: \( \text{Income} = \frac{2500}{0.05} = 50000 \).

Step3: Solve for question 6

For question 6, the tax amount is $1350 and the tax rate is 4.5% or 0.045 in decimal. Substitute into the formula: \( \text{Income} = \frac{1350}{0.045} = 30000 \).

Answer:

Question 5: $50000
Question 6: $30000