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 net tax rate of 17% means the tax owed is 0.17 times taxable income. Divide $6,414.95 by 0.17 to find the income: $6,414.95 ÷ 0.17 = $37,735. The correct choice is $37,735.

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