Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$

question 194

Multiple Choice

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**


- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$ , which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$ .
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Stephen earned $62,292 from wages as an accountant and made $2987 in interest. Find how much he paid in FICA and income taxes. Assume he is single and takes the standard deduction.

• A)$14,723
• B)$18,585
• C)$14,514
• D)$14,023

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