PRACTICE EXERCISE FOR CHAPTER 7

Barry, a self-employed plumber, received the following income in 2010/2011: Building society interest - 4,600 Dividends from a UK company - 4,500 He paid allowable interest of 1,000 on 13 August 2010/2011. Required Calculate Barrys income tax liability for 2010/2011, and assuming his trading income for 2010/2011 was: a) $ 7,000 b) 38,000 c) 64,000 d) 99,000 e) 150,000