The figure below show a simplified version of the current (2015)Canadian federal income-tax system.The marginal income-tax rates for the four ranges of income are 15%,22%,26%,and 29%,respectively. FIGURE 18-2
-Refer to Figure 18-2.An individual with a taxable income of $39 500 will pay ________ in income taxes.
A)$0
B)$6122
C)$5925
D)$6109
E)$8690

Question

The figure below show a simplified version of the current (2015)Canadian federal income-tax system.The marginal income-tax rates for the four ranges of income are 15%,22%,26%,and 29%,respectively.  FIGURE 18-2
-Refer to Figure 18-2.An individual with a taxable income of $39 500 will pay ________ in income taxes.
A)$0 
B)$6122 
C)$5925 
D)$6109 
E)$8690

Quizplus · Accepted Answer

To calculate the income tax, we need to find out which tax bracket the taxable income of $39,500 falls under. Since it falls between $36,421 and $87,74, the tax rate will be 22%. To calculate the amount of tax owed, we can use the following formula:

(Taxable Income - Previous Tax Bracket) x Tax Rate + Previous Tax Owed

Using this formula, we find that the income tax owed is:

($39,500 - $36,421) x 0.22 + $2,679 = $5,925

Therefore, the individual with a taxable income of $39,500 will pay $5,925 in income taxes. The correct answer is C.

The Figure Below Show a Simplified Version of the Current