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Financial Maths, SMB-013

The table shows the income tax rates for the 2022-23 financial year.

\begin{array} {|l|l|}
\hline
\rule{0pt}{2.5ex}\textit{    Taxable income}\rule[-1ex]{0pt}{0pt} & \textit{    Tax payable}\\
\hline
\rule{0pt}{2.5ex}\text{\$0 – \$18 200}\rule[-1ex]{0pt}{0pt} & \text{Nil}\\
\hline
\rule{0pt}{2.5ex}\text{\$18 201 – \$45 000}\rule[-1ex]{0pt}{0pt} & \text{19 cents for each \$1 over \$18 200}\\
\hline
\rule{0pt}{2.5ex}\text{\$45 001 – \$120 000}\rule[-1ex]{0pt}{0pt} & \text{\$5092 plus 32.5 cents for each \$1 over \$45 000}\\
\hline
\rule{0pt}{2.5ex}\text{\$120 001 – \$180 000}\rule[-1ex]{0pt}{0pt} & \text{\$29 467 plus 37 cents for each \$1 over \$120 000}\\
\hline
\rule{0pt}{2.5ex}\text{\$180 001 and over}\rule[-1ex]{0pt}{0pt} & \text{\$51 667 plus 45 cents for each \$1 over \$180 000}\\
\hline
\end{array}

Boonie is a professional cricketer and has a gross income of $145 000. During the financial year, he has allowable tax deductions of $1300 for cricket bats and pads.

What is Boonie's total amount of tax payable for the financial year?  (3 marks)

--- 6 WORK AREA LINES (style=lined) ---

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`$38\ 236`

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`text(Taxable income)\ =145\ 000-1300=$143\ 700`

`text{Tax payable}`

`= 29\ 467 + 0.37 (143\ 700-120\ 000)`

`= 29\ 467 + 8769`

`= $38\ 236`

Filed Under: Earning and Spending Money Tagged With: num-title-ct-corea, smc-4331-50-Tax tables

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