Question

question 5 of 10
a field project superintendent earns an annual salary of $72,800, and she contributes $7900 per year to her 401(k) plan. if she has a required deduction for income taxes (federal, state, and local combined) of 28% of pretax income, how much does she have withheld in income taxes per year?

a. $22,120

b. $18,172

c. $20,384

d. $22,596

Explanation:

Step1: Calculate pretax income

Pretax income = Annual salary - 401(k) contribution = $72,800 - $7,900 = $64,900

Step2: Calculate income tax withheld

Income tax withheld = Pretax income × Tax rate = $64,900 × 0.28 = $18,172

Answer:

B. $18,172