Kathy Works Full Time During the Day as an Economist

Multiple Choice

Kathy works full time during the day as an economist and faces a 50 percent marginal tax rate. If Kathy were to get an offer to work a second job in the evenings doing consulting work for a local business for $10,000 per year, how much of this additional income would she be able to keep as net pay after taxes?

A) $1,000
B) $4,000
C) $5,000
D) $10,000