17. This year, Anne's taxable income is $45,000. She receives an additional $550 in Canadian dividends from her mutual fund investments. The dividend gross-up is 138% and the federal dividend tax credit is 15.02%. Using the federal tax rates below, how much net federal tax will Anne pay on her dividend income? Level of Taxable Income First $43.561 Over $43.561 to $87.123 Over $87.123 to $135.054 Over $135,054 a. $52.98 b. $87.36 c. $121.00 d. $174.24 Federal Tax Rate 15% 22% 26% 29%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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17. This year, Anne's taxable income is $45,000. She receives an additional $550 in Canadian
dividends from her mutual fund investments. The dividend gross-up is 138% and the federal
dividend tax credit is 15.02%. Using the federal tax rates below, how much net federal tax will
Anne pay on her dividend income?
Level of Taxable Income
First $43.561
Over $43.561 to $87.123
Over $87.123 to $135.054
Over $135,054
a. $52.98
b. $87.36
c. $121.00
d. $174.24
Federal Tax Rate
15%
22%
26%
29%
Transcribed Image Text:17. This year, Anne's taxable income is $45,000. She receives an additional $550 in Canadian dividends from her mutual fund investments. The dividend gross-up is 138% and the federal dividend tax credit is 15.02%. Using the federal tax rates below, how much net federal tax will Anne pay on her dividend income? Level of Taxable Income First $43.561 Over $43.561 to $87.123 Over $87.123 to $135.054 Over $135,054 a. $52.98 b. $87.36 c. $121.00 d. $174.24 Federal Tax Rate 15% 22% 26% 29%
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