Subjects finance

Tax Calculation

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Tax Calculation


1. The problem involves computing tax based on the provided taxable income and tax rate table. 2. Given taxable incomes include Shs 85,3500, Shs 11,500, Shs 81,150, and Shs 35,500. 3. For each income, determine the tax bracket: - Shs 853,500 is above 550,001, so tax rate = 45%. - Shs 11,500 is in 0-105,000, so tax rate = 0%. - Shs 81,150 is also in 0-105,000, so tax rate = 0%. - Shs 35,500 is in 0-105,000, so tax rate = 0%. 4. Calculate tax for each: - Tax on Shs 853,500 = 0.45 \times 853,500 = Shs 384,075. - Tax on Shs 11,500 = 0 \times 11,500 = Shs 0. - Tax on Shs 81,150 = 0 \times 81,150 = Shs 0. - Tax on Shs 35,500 = 0 \times 35,500 = Shs 0. 5. Explanation: Tax rates increase with income brackets. We multiply income by the applicable rate to find tax. Final tax amounts: - For Shs 853,500: Shs 384,075 - For Shs 11,500: Shs 0 - For Shs 81,150: Shs 0 - For Shs 35,500: Shs 0