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% 20% 30% 35% 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 $112,000
• Interest Income from Bond Mutual Fund $2,000
• Capital Gains $3,000
• Dividend Income $1,200
• RRSP Contribution $4,000
• Charity Contributions to Algonquin College Alumni Fund $500

What would be the tax on the Dividend Gross Up amount? Assume a 40% tax rate.

Question 7 options:

	$576.00
	$630.00
	$555.52
	$497.50
	None of the Above

Question 8 (1 point)

Saved

What would be the federal dividend tax credit amount?

Question 8 options:

	$248.32
	$201.60
	$176.00
	$195.00
	None of the Above

Question 9 (1 point)

Saved

What would be the provincial dividend tax credit amount?

Question 9 options:

	$150.00
	$147.16
	$115.20
	$118.75
	None of the Above

Question 10 (1 point)

Saved

What would the amount of net taxes they would pay on their dividend income?

Question 10 options:

	$259.20
	$322.30
	$228.75
	$230.00
	None of the Above