How much did Amber pay in state taxes on her investment?

To determine how much Amber paid in state taxes on her investment, one would typically need to consider key factors such as the total income from the investments, the applicable tax rate, and any deductions or credits that may apply.

If B is indicated as the correct answer, this suggests that Amber’s taxable income from her investments, after considering the relevant variables, resulted in a state tax obligation of $500. This figure likely reflects a straightforward calculation based on the amount invested and the specific tax rate applicable to her investment income.

Situational context, such as the nature of the investment (e.g., capital gains, dividends, interest) and the state's tax legislation, might further clarify why this amount is accurate. In many instances, investment income is taxed at a flat rate or according to various brackets, making it essential for the calculations to match that applied methodology.

This understanding aligns with general investment tax principles, where accurate computation of taxes owed is critical for assessing returns on investment portfolios.