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Part A Calculating Taxable Income, Income Tax Payable and Effective Tax Rate (15 Marks) (The following information is for solving Questions 1 to 13 below)

Tax Brackets for Salary and Interest Income		Dividend Tax Treatment
0 to $15,000 $15,001 to $30,000 $30,001 to $70,000 $70,001 to $110,000 $110,001 to 200,000 $200,000 plus	0% 20% 30% 35% 40% 55%	Dividend Gross Up Rate Federal Dividend Tax Credit Provincial Dividend Tax Credit	20% 14% 8%
Charity Tax Credit		Capital Gains Exclusion Rate	50%
First $200 donation Above $200 donation	12% 20%

It is the month of February, and Taylor is working on their income taxes. Taylor recorded the following information from the past year.

• Salary Income $112,000
• Interest Income from Bond Mutual Fund $2,000
• Capital Gains $3,000
• Dividend Income $1,200
• RRSP Contribution $4,000
• Charity Contributions to Algonquin College Alumni Fund $500

Since Taylor made a RRSP contribution of $4,000, how much in income taxes would they be saving based on this RRSP contribution?

Question 11 options:

	$1,238.50
	$2,296.76
	$1,500.00
	$1,691.04
	None of the Above

Question 12 (1 point)

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Since Taylor had made $500 in charity contributions to Algonquin College during the past year, what would Taylors tax credit on this charity contribution (

Question 12 options:

	$76.00
	$84.00
	$90.00
	$112.00
	None of the Above

Question 13 (2 points)

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Assuming Taylor had decided to make the $4,000 RRSP contribution and makes the $500 charity contribution, how make would be their total tax bill from all sources of income

Question 13 options:

	$29,075.20
	$27,654.21
	$28,201.46
	$30,143.55
	None of the Above

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