How much more tax would Morel pay than his brother Floyd if Morel earns an annual income of $250,000 whereas Floyd earns $190,000?Search results for "Given the function T(x) is the function used to...

How much more tax would Morel pay than his brother Floyd if Morel earns an annual income of $250,000 whereas Floyd earns $190,000?

Search results for "Given the function T(x) is the function used to calculate the annual tax liability of an individual in the country of Bonanza.

  T(x) =     0.05x                                        x < 90,000

                0.15(x - 90,000) + 4,500            90,000 < x < 140,000   

               0.25(x - 140,000) + 12,000        140,000 < x < 220,000

               0.35 ( x -220,000) + 32,000       x > 220,000

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justaguide's profile pic

justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

Morel has an annual income of $250000. According to the terms of taxation provided, the tax to be paid by Morel is 0.35*(250000 - 220000) + 32000 = $42500

Floyd has an income of $190000. The tax due from him is 0.25*(190000 - 140000) + 12000 = $24500

Morel has to pay $18000 more in taxes as his income is higher.

Morel pays $18000 more in taxes than Floyd.

najm1947's profile pic

najm1947 | Elementary School Teacher | (Level 1) Valedictorian

Posted on

Morel's annual income is $250,000 which falls in the income slab x>$220,000 and the applicable tax function is:

T(x) = 0.35(x-220000)+32000

Morel's tax liability = 0.35(250000-220000)+32000

=> 10500+32000 = $42,500

Floyd's income is s $190,000 which falls in the income slab:

140,000 < x < 220,000 and the applicable tax function is:

T(x) = 0.25(x-140000)+12000

Floyd's tax liability = 0.25(190000-140000)+12000

=> 12500+12000 = $24,500

Difference in Tax liability = 42500-24500 = $18,000

The tax payable by Morel in excess to that payable by Floyd is $18,000

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