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How do you solve this question?

A company has taxable income $758,000. The federal tax is 35% of that portion left after the state tax has been paid. The state tax is 15% of that portion after federal tax has been paid. Find the federal and state taxes?

Minus One-Twelfth
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T. Smith
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  • Write the conditions of the task as two equations. $x$ is federal tax, $y$ is state tax and $z$ is the taxable income. – Lada Dudnikova Apr 20 '19 at 06:50
  • Will both the federation and the state demand that their tax is deducted first? Either way, the company is left with $$0.65\times 0.85\times 758000 = 0.85\times 0.65\times 758000$$ But it is not clear how the federation and the state should "split" the tax between them if both think their tax is calculated first? – Jeppe Stig Nielsen Apr 20 '19 at 07:16

1 Answers1

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Simply consider that the man has to pay x amount as FT and y amount as ST.

By the Situtation

x={35/100}{758000-y}

y={15/100}{758000-x}

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Marble
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