Question
Part A Calculating Taxable Income, Income Tax Payable and Effective Tax Rate (15 Marks) (The following information is for solving Questions 1 to 13 below)
Part A Calculating Taxable Income, Income Tax Payable and Effective Tax Rate (15 Marks)
(The following information is for solving Questions 1 to 13 below)
Tax Brackets for Salary and Interest Income |
| Dividend Tax Treatment |
|
0 to $15,000 $15,001 to $30,000 $30,001 to $70,000 $70,001 to $110,000 $110,001 to 200,000 $200,000 plus | 0% 15% 25% 30% 40% 55% | Dividend Gross Up Rate Federal Dividend Tax Credit Provincial Dividend Tax Credit | 20% 14% 8% |
Charity Tax Credit |
| Capital Gains Exclusion Rate | 50% |
First $200 donation Above $200 donation | 12% 20% |
|
|
It is the month of February, and Taylor is working on their income taxes. Taylor recorded the following information from the past year.
- Salary Income $120,000
- Interest Income from Bond Mutual Fund $2,000
- Capital Gains $4,400
- Dividend Income $1,450
- RRSP Contribution $4,000
- Charity Contributions to Algonquin College Alumni Fund $500
Question 1 (1 point)
Saved
What was Taylor's total income from all sources?
Question 1 options:
$128,200 | |
$134,000 | |
$129,500 | |
$125,400 | |
$127,850 |
Question 2 (2 points)
Saved
Ignoring the RRSP and Charity contributions, what is the amount of taxes Taylor would pay on their salary?
Question 2 options:
$25,460 | |
$32,200 | |
$29,800 | |
$22,500 | |
$28,250 |
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