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Margaret Vanyo's gross pay is $37,000 a year. The state income tax rate is three and a half percent of taxable wages. Vanyo takes a

Margaret Vanyo's gross pay is $37,000 a year. The state income tax rate is three and a half percent of taxable wages. Vanyo takes a single exemption of $2,500. How much is withheld from her gross earnings for state income tax for the year?

a

$1,110.00

b

$1,020.55

c

$1,065.00

d

$1,207.50

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