OOps, I reviewed more carefully, and the $63,500 answer does not appear to fall into the solution range. I think the only answers are $33,200, $43,300, and $53,400. I have fired my proof reader. Dave
Lower tax percentage of 15%: .15 time X = 8700 X = 8700 / .15 X = 58,000
Doesn't the exclusion need to be applied before you multiply by 0.15? I don't think you can apply the tax rate directly to unadjusted income. If you calculate the adjustment after you calculate the taxable income this way, you get a skewed figure-- or so it seems to me. Applying the exclusion rate retroactively doesn't correct for this skewing.
Same goes for:
Upper tax percentage of 35%: .35 times X = 8700 X = 8700 / .35 X = 24,857.14
Here, too, X needs to be an adjusted figure before you try calculating income. Or am I smoking something, here? Maybe I'm just not following the logic.
Ok, totally started over, and I am going to work this a little at a time. Right now before I start, I am not sure where this is going.
The problem says the income tax rates are assessed 'after' the exclusion amount has been subtracted from his income. I read this as meaning that the percentage is not applied until the range of values have been subtracted from his true income. The range of values is from 5200 to 9800. This has two impacts on the problem. 1) If you make somewhere between 5200 and 9800, you are only taxed for 5199. 2) 5199 times 15 percent is nowhere near 8700; he will make far more than 9800 then.
The exclusion values now have only the meaning of an amount that is subtracted from his true income.
So, subtracting the exclusion range from his income means he subtracts 4600 from his income. ****NOTE: this may be the error if I am making one ****
8700 = .15 times (his real income - 4600) 8700 = .15 times (X - 4600) 8700 / .15 = X - 4600 58000 = X - 4600. 62,600 = X
If the exclusion range had not existed, then he would have been simply taxed at 15 percent of 62,600. .15 times 62600 = 9390, which is way more than 8700.
This solution, if it is indeed one, requires that the way they calculate things is to subtract 4600 from his true income, which as far as I can see is what the problem says. But I could certainly be missing something.
Now I need an aspirin because my head hurts, lol... Dave
WHAT CORN AND PEANUTS ARE HIDDEN IN THE WARM AND STEAMING PILE? Vapid cultural commentary, pungent reviews, sundry Korea-related musings, fartological/scatological humor, political flatulence, and nondualistic Zen excretions in prose or poetry form.
Got a beef? Write the Hominid at bighominid@gmail.com, and put "HAIRY CHASMS" in the subject line, or your mail will be automatically trashed by Satan, my beautiful but deadly spam filter. Assume your mail will be published (editing at my discretion), unless you specify otherwise. Welcome to my backside.
BLOGROLLING POLICY: I don't do mutual linkage, and I have no problem with asymmetrical linkage: I link to bloggers who don't link back, and that's fine by me. Please DO NOT ask to be linked. Please DO NOT expect linkage just because you've linked to me. Also, if I don't link to you, please do not assume I think your blog sucks.
COMMENTS POLICY: My blog is my house; I'm responsible for keeping my dwelling clean. Commenters are guests, and guests of this blog will be civil, succinct, and relevant. All comments are subject to approval; I reserve the right to publish or not publish—in a pristine or altered form—all comments (and emails intended as comments) that I receive. Act like an asshole on my turf, and I'll make you look like the asshole you are. Be cool, and we won't have a problem. Simple, yes? And before I forget:
NO ANONYMOUS COMMENTS. Take responsibility for what you say. Screen names are OK, but no sock puppetry. Use the same SN consistently.
4 comments:
(Ed McMahon voice): You are correct, sir.
(sorry if I am posting twice, not sure which place I should respond to)
Lower tax percentage of 15%:
.15 time X = 8700
X = 8700 / .15
X = 58,000
Upper tax percentage of 35%:
.35 times X = 8700
X = 8700 / .35
X = 24,857.14
Both amounts are higher than the exclusion range, so you add the total amount of the range to both the upper and lower tax rates:
9800 - 5200 = 4600
58,000 + 4,600 = 62,600
24,857.14 + 4,600 = 29,457,14
All choices between these amounts, inclusive, are possible income amounts that yield an $8,700 tax liability.
That would be the ones you identified in your solution.
Dave
OOps, I reviewed more carefully, and the $63,500 answer does not appear to fall into the solution range. I think the only answers are $33,200, $43,300, and $53,400.
I have fired my proof reader.
Dave
Interesting and plausible. But--
Lower tax percentage of 15%:
.15 time X = 8700
X = 8700 / .15
X = 58,000
Doesn't the exclusion need to be applied before you multiply by 0.15? I don't think you can apply the tax rate directly to unadjusted income. If you calculate the adjustment after you calculate the taxable income this way, you get a skewed figure-- or so it seems to me. Applying the exclusion rate retroactively doesn't correct for this skewing.
Same goes for:
Upper tax percentage of 35%:
.35 times X = 8700
X = 8700 / .35
X = 24,857.14
Here, too, X needs to be an adjusted figure before you try calculating income. Or am I smoking something, here? Maybe I'm just not following the logic.
Ok, totally started over, and I am going to work this a little at a time. Right now before I start, I am not sure where this is going.
The problem says the income tax rates are assessed 'after' the exclusion amount has been subtracted from his income. I read this as meaning that the percentage is not applied until the range of values have been subtracted from his true income.
The range of values is from 5200 to 9800.
This has two impacts on the problem.
1) If you make somewhere between 5200 and 9800, you are only taxed for 5199.
2) 5199 times 15 percent is nowhere near 8700; he will make far more than 9800 then.
The exclusion values now have only the meaning of an amount that is subtracted from his true income.
So, subtracting the exclusion range from his income means he subtracts 4600 from his income.
****NOTE: this may be the error if I am making one ****
8700 = .15 times (his real income - 4600)
8700 = .15 times (X - 4600)
8700 / .15 = X - 4600
58000 = X - 4600.
62,600 = X
If the exclusion range had not existed, then he would have been simply taxed at 15 percent of 62,600.
.15 times 62600 = 9390, which is way more than 8700.
This solution, if it is indeed one, requires that the way they calculate things is to subtract 4600 from his true income, which as far as I can see is what the problem says. But I could certainly be missing something.
Now I need an aspirin because my head hurts, lol...
Dave
Post a Comment