John has to pay taxes. He earned $100,000 for the year. He has $30,000 in deductions. The first $20,000 of taxable income is taxed at 10%. The rest is taxed at 20%. How much does he pay in taxes?
Step-by-step reasoning process below:
12000
His taxable income is 100,000 - 30,000 = $70,000.

So he pays 20,000 *.

1 = $2000 tax at the lower rate.

He has to pay 70,000 - 20,000 = $50,000 at the higher rate.

The taxes for that is 50,000 *.

2 = $10,000.

So his total tax bill is 10,000 + 2,000 = $12,000.

.

The final answer: 12000