The figure below shows a simplified version of the current Canadian federal income- tax system. The marginal income- tax rates for the four ranges of income are 15 percent, 22 percent, 26 percent, and 29 percent, respectively. FIGURE 18- 2
-Refer to Figure 18- 2. An individual with a taxable income of $98 125 will pay $ in income taxes.

Question

The figure below shows a simplified version of the current Canadian federal income- tax system. The marginal income- tax rates for the four ranges of income are 15 percent, 22 percent, 26 percent, and 29 percent, respectively.  FIGURE 18- 2
-Refer to Figure 18- 2. An individual with a taxable income of $98 125 will pay $ in income taxes.

Quizplus · Accepted Answer

The correct answer is A because the individual's taxable income falls within the $97,001-$124,550 tax bracket, which has a tax rate of 24%. The tax liability is calculated as $98,125 x 0.24 = $19,404.

The Figure Below Shows a Simplified Version of the Current