According to table, $40,000 falls in the 3rd category (between $31,850 - $77,100).
The tax is "$4,386.25 + 25% of amount OVER 31,850"
Translating this to maths, we have:
[tex]4386.25+(0.25)(40,000-31,850)\\=4386.25+(0.25)(8150)\\=4386.25+2037.5\\=6423.75[/tex]
Choice A is correct.
ANSWER: A
