Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal p
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Answer:
Your answer would be D). $2,040.00
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Explanation:
To find the state income tax in this situation, we would need to be doing a lot of multiplying and dividing in order to get our answer.
We would use this equation:
t = px
t = Total paid
p = percentage
x = unknown
In this case, we would need to find what x is.
Let's give you the equation:
15,449.60 = 28.4x
We would need to get x by itself, so we would divide by 28.4. But first, we would need to move the decimal place from 28.4 2 times to the left, so we would be dividing by .284
Now, that;;s the federal income tax, but we have to find the state income tax. We would use 54,400 and miltiply it by 3.75 (move 2 decimal places to the left to get 0.0375).
Agnes payed <u>$2,040</u> in state income tax.
D). $2,040 should be your FINAL answer.
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