Question

If Mrs. Smith buys an electric car and gets a federal income tax credit for $750, and her marginal tax bracket is 30 % , and she shows a tax liability before applying the savings from the credit of $1,000, she should be able to reduce her tax to...

Group of answer choices

$250

$775

$700

$175

Answer 1

Answer:

reduce tax = $250

so correct option is a $250

Explanation:

given data

federal income tax credit = $750

marginal tax bracket = 30 %

savings from the credit = $1,000

solution

we get here reduce tax that is express as

reduce her tax that is her tax liability before apply an saving from credit and it is less income tax credit

so reduce tax =  savings from the credit - federal income tax credit  ............1

reduce tax = $1,000 - $750

reduce tax = $250

so correct option is a $250

Answer 2

Answer:

His answer is right *Upward arrow*

Explanation:

Lots of explanation that makes sense

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