Sara Moon is a video editor who earns $63,840 annually. She is married, has 2 dependents, and her state tax rate is 4%.

The answer is below

Step-by-step explanation:

Use the Exemption amounts in Figure 2.2 on page 132 to find the (a) amount for exemptions and (b) annual state income taxes.

The exemptions are shown in the image below.

a) We can see that the exemptions for a married person is $4000 and $2000 per dependent. Since there are 2 dependents therefore:

Amount for exemptions = $4000 + (2 dependents × $2000 per dependent)

Amount for exemptions = $4000 + $4000 = $8000

Amount for exemptions = $8000

b) Taxable wages = Annual gross pay - Exemptions

Taxable wages = $63840 - $8000 = $55840

Annual state income taxes = Taxable wages × State tax rate

Annual state income taxes = $55840 × 4% = $2233.6

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