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 $138 586,how much total federal tax would be due?
A)$497
B)$5639
C)$24 794
D)$29 327
E)$36 032

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 $138 586,how much total federal tax would be due?
A)$497 
B)$5639 
C)$24 794 
D)$29 327 
E)$36 032

Quizplus · Accepted Answer

The taxable income falls within the fourth tax bracket which has a tax rate of 29%. To calculate the federal tax, we need to find 29% of the taxable income and then subtract the corresponding federal tax credit of $6,438.

Taxable income = $138,586 
Tax rate = 29% 
Federal tax = (0.29 x $138,586) - $6,438 = $29,327

Therefore, the total federal tax due would be $29,327. Therefore, the answer is D.

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