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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
65% (01:24) correct
35%
(01:12)
wrong
based on 91
sessions
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In 2001, John paid 5 percent of his taxable income as taxes. In 2002, what percent of John’s taxable income did he pay as taxes?
(1) In 2001, John’s taxable income was $40,000.
(2) In 2002 John paid $250 more in state tax than he did in 2001.
(1) In 2001, John’s taxable income was $40,000.
(2) In 2002 John paid $250 more in state tax than he did in 2001.
23 Jan 2026, 23:07
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In 2001, John paid 5 percent of his taxable income as taxes. In 2002, what percent of John’s taxable income did he pay as taxes?
(1) In 2001, John’s taxable income was $40,000.
(2) In 2002 John paid $250 more in state tax than he did in 2001.
Basically, we need to find out the value of: (Tax/Taxable income)*100 in the year 2002, and the only info. given to us is that in the year 2001, John paid 5 percent of his taxable income as taxes.
Assuming his taxable income in 2001 as X, the taxes paid by John in 2001 would amount to 0.05X.
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: In 2001, John’s taxable income was $40,000.
This statement only tells us the value of John's taxable income in 2001, and there is no information about the income or tax paid in 2002. Hence, we can easily conclude that Statement 1 is insufficient alone.
Now, let's take a look at Statement 2 closely:
Statement 2: In 2002 John paid $250 more in state tax than he did in 2001.
Through statement 2, we can infer that John paid a total of $(0.05X+250). However, this does not give us any clue about John's taxable income in 2002.
Now, let's look at the combination of Statements 1 and 2:
We know: John's income in 2001 = $40,000 and thus, taxes paid in 2001 = 0.05*40,000 = $2000
For the year 2002, we know: John paid a total of $(0.05X+250) in taxes, i.e. $2250. However, we still do not know the value of John's taxable income in the year 2002. Thus, we still cannot calculate the percent of John’s taxable income he paid in taxes in 2002.
Hence, the correct answer is Option E - Neither statement alone nor together is sufficient
Hope this helps!
(1) In 2001, John’s taxable income was $40,000.
(2) In 2002 John paid $250 more in state tax than he did in 2001.
Basically, we need to find out the value of: (Tax/Taxable income)*100 in the year 2002, and the only info. given to us is that in the year 2001, John paid 5 percent of his taxable income as taxes.
Assuming his taxable income in 2001 as X, the taxes paid by John in 2001 would amount to 0.05X.
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: In 2001, John’s taxable income was $40,000.
This statement only tells us the value of John's taxable income in 2001, and there is no information about the income or tax paid in 2002. Hence, we can easily conclude that Statement 1 is insufficient alone.
Now, let's take a look at Statement 2 closely:
Statement 2: In 2002 John paid $250 more in state tax than he did in 2001.
Through statement 2, we can infer that John paid a total of $(0.05X+250). However, this does not give us any clue about John's taxable income in 2002.
Now, let's look at the combination of Statements 1 and 2:
We know: John's income in 2001 = $40,000 and thus, taxes paid in 2001 = 0.05*40,000 = $2000
For the year 2002, we know: John paid a total of $(0.05X+250) in taxes, i.e. $2250. However, we still do not know the value of John's taxable income in the year 2002. Thus, we still cannot calculate the percent of John’s taxable income he paid in taxes in 2002.
Hence, the correct answer is Option E - Neither statement alone nor together is sufficient
Hope this helps!
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