13
practice testMultiple Choice

Practice Test

Question 13 • Career Planning and Development

Phung works as a pharmacist in Tampa, Florida. Her income is $⁢116,200 a year. Which statements about Phung’s income and tax situation are correct? Choose three correct answers.

Answer
A
Phung will pay 28 percent of her total income in federal taxes.
B
The first 9 dollars comma 075 she makes each year will be taxed at 10 percent .
C
Phung will pay 28 percent of her total income in state taxes.
D
After 36 dollars comma 000 , Phung’s taxable income will experience the greatest tax bracket increase.
E
Portions of Phung’s income will be taxed at 10 percent , 15 percent , 25 percent , and 28 percent .

Explanation

Federal income tax rates are marginal, so each rate applies only to the portion of income within that bracket. The first $9,075 is taxed at 10%, and the rate rises most sharply after about $36,000, from 15% to 25%. Since Phung earns $116,200, portions of her income fall in the 10%, 15%, 25%, and 28% brackets. She does not pay 28% on all her income, and Florida has no state income tax.

AI-written and checked against the verified answer.

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