Question

Suppose the government used the following formula to compute a family’s tax liability: Taxes owed =...

Suppose the government used the following formula to compute a family’s tax liability:

Taxes owed = 28% of income - $8,000. How much would a family have to earn to owe $0 in taxes?

a.

$8,000
b.

$16,283
c.

$28,571
d.

$30,694
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Answer #1

Answer:- Correct option is (a).

Given,

Taxes owed = 28% of income - $8000

                      = 0* 0.28-8000

                      =0-8000

                      =-8000

Hence, the Family is eligible for $8000 of tax credit.

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