QuestionJune 5, 2025

The Chang family makes 99,100 annually and has 2 children. The state in which they live allows a 3,000 deduction for married couples and 2,000 for each dependent or child. The tax rate is 5.2% True or False: The state income tax for the Chang family is 4,789.20 True

The Chang family makes 99,100 annually and has 2 children. The state in which they live allows a 3,000 deduction for married couples and 2,000 for each dependent or child. The tax rate is 5.2% True or False: The state income tax for the Chang family is 4,789.20 True
The Chang family makes 99,100 annually and has 2 children. The state in which
they live allows a 3,000 deduction for married couples and 2,000 for each
dependent or child. The tax rate is 5.2%  True or False: The state income tax for the
Chang family is 4,789.20
True

Solution
4.1(179 votes)

Answer

True Explanation 1. Calculate Total Deductions Deduction for married couple: \3,000. Deduction for 2 children: 2 \times \2,000 = \4,000. Total deductions: \3,000 + \4,000 = \7,000. 2. Calculate Taxable Income Subtract total deductions from annual income: \99,100 - \7,000 = \92,100. 3. Calculate State Income Tax Apply tax rate to taxable income: **Tax = Taxable\ Income \times Tax\ Rate**. So, \92,100 \times 0.052 = \4,789.20.

Explanation

1. Calculate Total Deductions<br /> Deduction for married couple: \$3,000. Deduction for 2 children: $2 \times \$2,000 = \$4,000$. Total deductions: \$3,000 + \$4,000 = \$7,000.<br />2. Calculate Taxable Income<br /> Subtract total deductions from annual income: \$99,100 - \$7,000 = \$92,100.<br />3. Calculate State Income Tax<br /> Apply tax rate to taxable income: **Tax = Taxable\ Income \times Tax\ Rate**. So, \$92,100 \times 0.052 = \$4,789.20.
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