Last year, Avery received the following in different forms of income:

• Salary was $114,400
• Interest payments from bond mutual funds was $2,200
• Dividend payments from equity mutual funds was $1,500
• Capital gains from selling shares in Bank of Montreal was $3,600

The combined federal and provincial tax rates in the province Avery lives in is 32 percent. For dividends, the Gross up amount is 22 percent, federal dividend tax credit is 12 percent, and the provincial dividend tax credit is 4.5 percent.

1.What is Avery's total income?

a.$116,500

b.$114,400

c.$122,900

d.$121,700

e.None of the Above

2.What is the amount of taxes Avery would pay on salary?

a.$37,280

b.$38,048

c.$37,728

d.$36,608

e.None of the Above

3.What is the amount of taxes Avery would pay on interest income?

a.$704

b.$832

c.$768

d.$930

e.None of the Above

4.What is the taxable amount of Avery's capital gains income?

a.$2,500

b.$1,800

c.$1,300

d.$1,200

e.None of the Above

5.What is the amount of taxes Avery would pay on capital gains income?

a.$516.00

b.$587.50

c.$484.00

d.$576.00

e.None of the Above

6.What is Dividend Gross Up amount on Avery's dividend income?

a.$1,976

b.$1,830

c.$1,445

d.$1,736

e.None of the Above

7.What would be the tax on the Dividend Gross Up amount?

a.$631.68

b.$729.80

c.$555.52

d.$585.60

e.None of the Above

8.What would be the federal dividend tax credit amount?

a.$219.60

b.$262.30

c.$186.88

d.$257.12

e.None of the Above

9.What would be the provincial dividend tax credit amount?

a.$93.44

b.$104.16

c.$78.56

d.$82.35

e.None of the Above

10.What would the amount of taxes Avery would pay on dividend income?

a.$243.04

b.$262.30

c.$316.64

d.$283.65

e.None of the Above

11.What is the total amount of taxes would Avery be paying on total income?

a.$38,171.65

b.$37,280.20

c.$39,915.09

d.$38,707.04

e.None of the Above

12.What is the average effective tax rate would Avery be paying on total income?

a.33.6%

b.29.9%

c.31.4%

d.28.8%

e.None of the Above