If a progressive tax system has rates of 10%, 15%, and 20% for incomes of \$40,000, \$80,000, and \$120,000 respectively, how much tax is owed by someone earning \$120,000?

• A. \$24,000
• B. \$30,000
• C. \$18,000
• D. \$12,000

Answer: (A)