The table below shows 2015 federal income-tax rates in Canada.
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%?
A)$0
B)$6705
C)$8003
D)$18 000
E)$34 800

Question

The table below shows 2015 federal income-tax rates in Canada.
  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%?
A)$0 
B)$6705 
C)$8003 
D)$18 000 
E)$34 800

Quizplus · Accepted Answer

The minimum rate of 15% applies to the first bracket of taxable income. Assuming the tax brackets are similar to those in the U.S., the first $45,282 (or similar amount) would be taxed at 15%. Therefore, $45,282 * 0.15 = $6,792.30, which is closest to $6,705 among the given options.

The Table Below Shows 2015 Federal Income-Tax Rates in Canada