Question

You have a salary of $32,000, an RPP deduction of $2000, paid $1000 interest on your mortgage and paid union dues of $800. If the basic personal amount is $11,635 and the federal tax rate is 15 percent, what federal tax do you owe?

a.

$2635

b.

$4230

c.

$2485

d.

$4380

Answer 1

The correct answer is:

c. $2,485

Explanation: After considering the salary, RPP deduction, and other adjustments, the taxable income is determined. Applying the federal tax rate of 15% to the taxable income gives us the federal tax owed, which amounts to $2,485.