Mr and Mrs David File a Joint Tax Return

question 86

Multiple Choice

Mr and Mrs David file a joint tax return. They have $169,300 taxable income in 2018, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate. 

• A) $7,032
• B) $3,516
• C) $7,350
• D) None of the above.

---

Definitions:

Dimensional-analysis

A mathematical technique used to convert one set of units to another, facilitating computations and solving problems.

Centimeters

A unit of length in the metric system, equivalent to one hundredth of a meter.

Inches

A unit of length in the imperial and US customary systems, equivalent to 1/12th of a foot.

Dimensional-analysis

A technique utilized for converting measurements by applying the fundamental properties of dimensions associated with the variables involved.