(4) Tim has also received another offer from a Canadian Basketball club in the Alberta province....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(4) Tim has also received another offer from a Canadian Basketball club in the Alberta province. The club provides him with a three-year contract with an annual salary of 520,000 Canadian dollars (CAD) (i.e., annual taxable income = $520,000CAD). The Canadian government currently charges two types of income taxes to the individual taxpayer - the federal income tax and the provincial income tax; both are estimated based on the taxpayers' annual taxable income and the following Canada tax rates tables. Assuming the exchange rate between the Australian dollar and the Canada dollar is 1 (i.e., equal value): (i) (ii) Estimate Tim's annual after-tax income if he accepts the offer from the Canadian Basketball club in the Alberta province. Assuming everything else remains the same, based on your after-tax income calculation from part (3) and part (4), which offer should Tim accept? The Australian club's offer (i.e., offer 1) or the Canadian club's offer? Explain. Taxable income $14,398 Table 2: Canada 2022 Federal income tax rates $14,399 $50,197 $50,198 - $100,392 $100,393 - $155,625 $155,626-$221,708 $221,709 and over Taxable income 0-$131,220 $131,221-$157,464 $157,465-$209,952 $209,953- $314,928 Tax on this income $314,929 and over Nil Table 3: Canada 2022 Provincial (Alberta) income tax rates 15c for each $1 over $14,398 $5,369.85 plus 20.5c for each $1 over $50,197 $15,659.83 plus 26c for each $1 over $100,392 $30,020.41 plus 29c for each $1 over $155,625 $49,184.48 plus 33c for each $1 over $221,708 Tax on this income 10c for each $1 below $131,221 $13,122 plus 12c for each $1 over $131,220 $16,271.28 plus 13c for each $1 over $157,464 $23,094.72 plus 14c for each $1 over $209,952 $37,791.36 plus 15c for each $1 over $314,928 (4) Tim has also received another offer from a Canadian Basketball club in the Alberta province. The club provides him with a three-year contract with an annual salary of 520,000 Canadian dollars (CAD) (i.e., annual taxable income = $520,000CAD). The Canadian government currently charges two types of income taxes to the individual taxpayer - the federal income tax and the provincial income tax; both are estimated based on the taxpayers' annual taxable income and the following Canada tax rates tables. Assuming the exchange rate between the Australian dollar and the Canada dollar is 1 (i.e., equal value): (i) (ii) Estimate Tim's annual after-tax income if he accepts the offer from the Canadian Basketball club in the Alberta province. Assuming everything else remains the same, based on your after-tax income calculation from part (3) and part (4), which offer should Tim accept? The Australian club's offer (i.e., offer 1) or the Canadian club's offer? Explain. Taxable income $14,398 Table 2: Canada 2022 Federal income tax rates $14,399 $50,197 $50,198 - $100,392 $100,393 - $155,625 $155,626-$221,708 $221,709 and over Taxable income 0-$131,220 $131,221-$157,464 $157,465-$209,952 $209,953- $314,928 Tax on this income $314,929 and over Nil Table 3: Canada 2022 Provincial (Alberta) income tax rates 15c for each $1 over $14,398 $5,369.85 plus 20.5c for each $1 over $50,197 $15,659.83 plus 26c for each $1 over $100,392 $30,020.41 plus 29c for each $1 over $155,625 $49,184.48 plus 33c for each $1 over $221,708 Tax on this income 10c for each $1 below $131,221 $13,122 plus 12c for each $1 over $131,220 $16,271.28 plus 13c for each $1 over $157,464 $23,094.72 plus 14c for each $1 over $209,952 $37,791.36 plus 15c for each $1 over $314,928
Expert Answer:
Answer rating: 100% (QA)
To estimate Tims annual aftertax income if he accepts the offer from the Canadian Basketball club in ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these finance questions
-
Explain the meaning of the terms emoluments, employments and office for the purposes of PAYE as you earn systems. 2. Explain the actual receipts basis of assessing the emoluments from the employment...
-
You are looking at buying a piece of real estate and you intend to borrow as much as you possibly can from a bank to buy the property. The bank you are dealing with has a requirement that the LVR for...
-
The concept of GDP is used by policy makers for many purposes that include keeping track of the growth of our economy and forecasting a recession; but it is also abused by some. Discuss some...
-
Atomic vibrations in a metal consider point ions of mass M and charge e immersed in a uniform sea of conduction electrons. The ions are imagined to be in stable equilibrium when at regular lattice...
-
Explain very briefly the function of following mountings: (i) Steam stop valve (ii) Feed check valve (iii) Blow-off cock (iv) water level indicator (v) Pressure gauge (vi) Safety valve
-
X-Out Sporting Goods Co. operates two divisionsthe Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of June 30, 2010, the end of the...
-
A trading country is defined as being relatively labour - abundant compared to its trading partner. The country produces two goods, good El is labour - intensive in production, and good Kay is...
-
As transformation leaders it is important to be able to identify areas of improvement and collaborate interdisciplinary leadership teams to improve quality and safety for your patients. Consider your...
-
Solve the equation. -7y-10=8y+20
-
Find f'(x) and simplify. f(x) = X x+12
-
3 Given that f(x) = 5x + 4 and g(x) = x, find (fog)(-1). (fog)(-1) =
-
x-2 (a) f(x) = x-81 The domain in interval notation is
-
8. Solve for x. a) 2 = 16/2
-
On January 1,20X6, SyntheticInc.(SI) paid $300,000 cash to acquire 30%of the common shares of Organic Inc. (OI). At the time of acquisition, the carrying value of OIs common shares was $200,000, and...
-
Refrigerant-134a enters an adiabatic compressor as saturated vapor at 120 kPa at a rate of 0.3 m3/min and exits at 1-MPa pressure. If the isentropic efficiency of the compressor is 80 percent,...
-
Compare strict liability in tort with the implied warranty of merchantability.
-
Marcia executed a mortgage on Blackacre to secure her indebtedness to Ajax Savings and Loan Association in the amount of $25,000. Later, Marcia sold Blackacre to Morton. The deed contained the...
-
Plaintiff-appellant First State Bank of Sinai (Bank) sued defendant-appellee Mervin Hyland (Mervin) seeking to hold him responsible for payment on a promissory note which he cosigned. * * * [T]he...
-
For a sample of motorcycle speeds, name the values that constitute the 5-number summary
-
Approximately what percentage of taxi-in times is less than the 75th percentile?
-
An article in the New York Times noted that these new ZIP codes were created in New York City: 10065, 10021, 10075. Find the mean of these three numbers. What is fundamentally wrong with this result?
Study smarter with the SolutionInn App