GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 13 Dec 2018, 16:47

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in December
PrevNext
SuMoTuWeThFrSa
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345
Open Detailed Calendar
  • GMATbuster's Weekly GMAT Quant Quiz, Tomorrow, Saturday at 9 AM PST

     December 14, 2018

     December 14, 2018

     09:00 AM PST

     10:00 AM PST

    10 Questions will be posted on the forum and we will post a reply in this Topic with a link to each question. There are prizes for the winners.
  • The winning strategy for 700+ on the GMAT

     December 13, 2018

     December 13, 2018

     08:00 AM PST

     09:00 AM PST

    What people who reach the high 700's do differently? We're going to share insights, tips and strategies from data we collected on over 50,000 students who used examPAL.

Mr. Hernandez, who was a resident of State X for only 8

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
Status: Waiting for Decisions
Joined: 23 Dec 2012
Posts: 39
Location: India
Sahil: Bansal
GMAT 1: 570 Q49 V20
GMAT 2: 690 Q49 V34
GPA: 3
WE: Information Technology (Computer Software)
GMAT ToolKit User
Mr. Hernandez, who was a resident of State X for only 8  [#permalink]

Show Tags

New post 02 Aug 2013, 09:29
1
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

86% (01:47) correct 14% (02:04) wrong based on 87 sessions

HideShow timer Statistics

Mr. Hernandez, who was a resident of State X for only 8 months last year, had a taxable income of $22,500 for the year. If the state tax rate were 4 percent of the year’s taxable income prorated for the proportion of the year during which the taxpayer was a resident, what would be the amount of Mr. Hernandez’s State X tax for last year?

(A) $900
(B) $720
(C) $600
(D) $300
(E) $60
Senior Manager
Senior Manager
avatar
B
Joined: 24 Aug 2009
Posts: 469
Schools: Harvard, Columbia, Stern, Booth, LSB,
Re: quant income tax  [#permalink]

Show Tags

New post 02 Aug 2013, 10:11
1
bsahil wrote:
Mr. Hernandez, who was a resident of State X for only 8 months last year, had a taxable income of $22,500 for the year. If the state tax rate were 4 percent of the year’s taxable income prorated for the proportion of the year during which the taxpayer was a resident, what would be the amount of Mr. Hernandez’s State X tax for last year?

(A) $900
(B) $720
(C) $600
(D) $300
(E) $60


Total tax for the year = 22,500 x 4% = 900
As stated Annual tax is prorated as per the duration of stay.
Prorated Tax = 900 (8/12) = 600
Answer C
_________________

If you like my Question/Explanation or the contribution, Kindly appreciate by pressing KUDOS.
Kudos always maximizes GMATCLUB worth
-Game Theory

If you have any question regarding my post, kindly pm me or else I won't be able to reply

Chat Moderator
User avatar
B
Joined: 07 Mar 2016
Posts: 46
Premium Member
Re: Mr. Hernandez, who was a resident of State X for only 8  [#permalink]

Show Tags

New post 03 Apr 2017, 06:13
Total tax for the 12 months: $22,500 * 4% = $900

6 months of taxes: $450

The prompt asks for the total taxes paid for 8 months. If 6 months of taxes is $450, 8 months would have to be a little bit more than $450. The next value up from $450 is $600.

Answer Choice "C".
_________________

...once and a while you get shown the light, in the strangest of places if you look at it right...

Intern
Intern
avatar
B
Joined: 22 Mar 2017
Posts: 15
Re: Mr. Hernandez, who was a resident of State X for only 8  [#permalink]

Show Tags

New post 24 May 2017, 16:17
1
$22,500 / 12 months = $1,875 income per month
$1,875 * 8 months of residence = $15,000 of taxable income
$15,000 * .04 tax rate = $600 of state tax paid
Target Test Prep Representative
User avatar
G
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2830
Re: Mr. Hernandez, who was a resident of State X for only 8  [#permalink]

Show Tags

New post 31 May 2017, 18:02
bsahil wrote:
Mr. Hernandez, who was a resident of State X for only 8 months last year, had a taxable income of $22,500 for the year. If the state tax rate were 4 percent of the year’s taxable income prorated for the proportion of the year during which the taxpayer was a resident, what would be the amount of Mr. Hernandez’s State X tax for last year?

(A) $900
(B) $720
(C) $600
(D) $300
(E) $60


Since Mr. Hernadez’s taxable income is prorated for 8 months of the year, his taxable income is:

8/12 x 22,500 = 2/3 x 22,500 = 15,000

Thus, he had to pay 15,000 x 0.04 = 600 dollars in taxes.

Answer: C
_________________

Jeffery Miller
Head of GMAT Instruction

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Non-Human User
User avatar
Joined: 09 Sep 2013
Posts: 9152
Premium Member
Re: Mr. Hernandez, who was a resident of State X for only 8  [#permalink]

Show Tags

New post 22 Aug 2018, 15:30
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

GMAT Club Bot
Re: Mr. Hernandez, who was a resident of State X for only 8 &nbs [#permalink] 22 Aug 2018, 15:30
Display posts from previous: Sort by

Mr. Hernandez, who was a resident of State X for only 8

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.