2.Use the the marginal tax information in the table below to calculate the annual after tax income Greg should expect in his retirement. Greg expects $11201 annually from CPP, $6467 annually from OAS, and $99,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000. Simplified Marginal Tax TableTax atstart ofrangeBeginningof rangeto12,000to20,000to48,000 to95,000to148,000to210,000+End ofrange12,00020,00048,00095,000Marginalrate0%15%1,20022%7,360 30%148,000 21,460 40%210,00042,66045%above70,56050%

Income Tax Payable - The term "income tax payable" refers to the amount of taxes owed by a business…

Answered: ume that his OAS will be clawed back on…

Business

Accounting

ume that his OAS will be clawed back on any income above $76,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Use the the marginal tax information in the table below to calculate the annual after tax income Greg should expect in his retirement. Greg expects $11201 annually from CPP, $6467 annually from OAS, and $99,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000.

Simplified Marginal Tax Table
Tax at
start of
range
Beginning
of range
to
12,000
to
20,000
to
48,000 to
95,000
to
148,000
to
210,000
+
End of
range
12,000
20,000
48,000
95,000
Marginal
rate
0%
15%
1,200
22%
7,360 30%
148,000 21,460 40%
210,000
42,660
45%
above
70,560
50%

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