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%
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%
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 43P
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Question
![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%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31315627-3c68-4775-926f-62d39429f1c7%2F709290c4-6e13-4a34-8e05-f1eab2c37e8d%2Fo0b8l5_processed.png&w=3840&q=75)
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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