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 26%?
A)$497
B)$5639
C)$8960
D)$7955
E)$31 200

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 26%?
A)$497 
B)$5639 
C)$8960 
D)$7955 
E)$31 200

Quizplus · Accepted Answer

According to the table, the tax rate for taxable income between $90,563 and $140,388 is 26%. Therefore, an individual with a taxable income of $120,000 would owe 26% tax on the amount between $90,563 and $120,000.

$120,000 - $90,563 = $29,437

$29,437 x 0.26 = $7,655

Therefore, the federal tax due from the earnings taxed at the rate of 26% is $7,655. The correct answer is D) $7,955.

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