Question

You earn $50,000 dollars per year and the federal tax rate is 10%. Your gross income is

$5,000
$10,000
$45,000
$50,000

Answer 1

45,000?

Answer 2

looks good to me

Answer 3

just a little problem here... gross income is before any deductions...

tax is a deduction...

so if you earn $50000

then your gross income is $50000

tax = 10% of $50000 or $5000

so the nett income is $45000

I think that covers all the options... based on the answer choices.