Question

Franklin Stewart arrived at the following tax information: Gross salary $ 47,300 Interest earnings 350 Basic personal amount 14,398 Union dues 7,920 Eligible childcare expenses 1,480 What amount will Franklin report as taxable income? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Answer 1

$23,502 (rounded to the nearest dollar).

Explanation:

To calculate Franklin Stewart's taxable income, you need to subtract certain deductions and tax credits from his gross salary. Here's how you can do it:

Calculate the total deductions and credits:

Basic personal amount: $14,398

Union dues: $7,920

Eligible childcare expenses: $1,480

Total deductions and credits = $14,398 + $7,920 + $1,480 = $23,798

Subtract the total deductions and credits from the gross salary:

Taxable income = Gross salary - Total deductions and credits

Taxable income = $47,300 - $23,798

Now, calculate the taxable income:

Taxable income = $47,300 - $23,798 = $23,502

So, Franklin Stewart will report a taxable income of $23,502 (rounded to the nearest dollar).