Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

Practice this question and more.

If your taxable income is $50,000 and the tax rate is 20%, what would be your tax liability?

$10,000
$8,000
$12,000
$15,000

The correct answer is: $10,000

To calculate tax liability, you need to multiply the taxable income by the tax rate. In this scenario, the taxable income is $50,000 and the tax rate is 20%. This calculation is straightforward: Tax liability = Taxable Income x Tax Rate Tax liability = $50,000 x 0.20 Tax liability = $10,000 This shows that the tax liability is indeed $10,000 when applying a 20% tax rate on a taxable income of $50,000. This method of calculation is fundamental for determining how much an individual or business must pay in taxes based on their income and the applicable tax rate.