Question

this year, you owed $6,414.95 in federal income tax. if you are taxed at a net rate of 17%, what was your taxable income for this year?
a. $109,054
b. $26,792
c. $44,867
d. $37,735
please select the best answer from the choices provided
○ a
○ b
○ c
○ d

Explanation:

Step1: Recall the formula for tax

Tax amount = Tax rate × Taxable income. So, Taxable income = Tax amount / Tax rate.

Step2: Substitute the values

Tax amount is $6,414.95, tax rate is 17% or 0.17. So, Taxable income = \( \frac{6414.95}{0.17} \).

Step3: Calculate the division

\( \frac{6414.95}{0.17} = 37735 \).

Answer:

d. $37,735