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 total federal tax would be due?
A)$6109
B)$8959
C)$31 200
D)$24 494
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 total federal tax would be due?
A)$6109 
B)$8959 
C)$31 200 
D)$24 494 
E)$28 020

Quizplus · Accepted Answer

To calculate the federal tax, we need to add up the amounts from each bracket:
- The first $44,701 is taxed at 15%, so that's 0.15 x $44,701 = $6,705.15
- The next $44,700 is taxed at 22%, so that's 0.22 x $44,700 = $9,834
- The remaining $30,599 is taxed at 26%, so that's 0.26 x $30,599 = $7,954.74

Total federal tax = $6,705.15 + $9,834 + $7,954.74 = $24,493.89

Therefore, the best choice is D: $24,494.

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