The table below shows 2012 federal income- tax rates in Canada. $$\begin{array} { | c | c | }
\hline \text { Taxable Income } & \text { Mar ginal Tax Rate } \
\hline \$ 0 - \$ 42707 & 15 \% \
\hline \$ 42708 - \$ 85414 & 22 \% \
\hline \$ 85415 - \$ 132406 & 26 \% \
\hline \$ 132407 \text { and over } & 29 \% \
\hline
\end{array}$$ TABLE 18- 1
-Refer to Table 18- 1.If an individual had a taxable income of $120 000,how much federal tax would be due from the earnings taxed at the minimum rate of 15%?

Question

The table below shows 2012 federal income- tax rates in Canada. $$\begin{array} { | c | c | } 
\hline \text { Taxable Income } & \text { Mar ginal Tax Rate } \
\hline \$ 0 - \$ 42707 & 15 \% \
\hline \$ 42708 - \$ 85414 & 22 \% \
\hline \$ 85415 - \$ 132406 & 26 \% \
\hline \$ 132407 \text { and over } & 29 \% \
\hline
\end{array}$$ TABLE 18- 1
-Refer to Table 18- 1.If an individual had a taxable income of $120 000,how much federal tax would be due from the earnings taxed at the minimum rate of 15%?

Quizplus · Accepted Answer

The minimum rate of 15% applies to the first $42,707 of taxable income. Therefore, the federal tax due from the earnings taxed at the minimum rate of 15% is 0.15 * $42,707 = $6,406.

The Table Below Shows 2012 Federal Income- Tax Rates in Canada