Nevan’s gross pay was $45,150 last year. The federal income tax withholding from his pay was 16% of his gross pay. Nevan determined the federal income tax he owes is $6,150. Which of the following is true?
A. Nevan owes an additional $984 in federal tax.
B. Nevan owes an additional $1,074 in federal tax.
C. Nevan will receive a refund of $984.
D. Nevan will receive a refund of $1,074.
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