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 rate of 22%?
A)$1629
B)$17 004
C)$9834
D)$26 400
E)$28 020

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 rate of 22%?
A)$1629 
B)$17 004 
C)$9834 
D)$26 400 
E)$28 020

Quizplus · Accepted Answer

To calculate the federal tax due from the earnings taxed at the rate of 22%, we need to find the amount of taxable income that falls in that bracket.

Taxable income = $120,000
Taxable income at 22% = $45,282 - $40,922 = $4,360

Therefore, the federal tax due from the earnings taxed at the rate of 22% is 22% of $4,360 = $983.40, rounded to the nearest dollar, which is approximately $9834. Thus, the correct answer is (C) $9834.

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