Subjects finance

Tax Payable

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Tax Payable


1. We are asked to determine the tax payable on the income computed in part (b)(i). 2. Assume the income from part (b)(i) is $I$ (replace with actual computed income). 3. Identify the tax rates applicable to this income bracket. 4. Compute the tax payable by applying the tax rate: $$\text{Tax} = I \times \text{tax rate}$$. 5. If the tax system is progressive, calculate tax for each bracket portion and sum all amounts. 6. The final tax payable amount is the sum calculated in step 5 or step 4 as per tax rules. 7. Substitute the value of $I$ and tax rates to get the numeric answer (to be done with actual values).