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Question $16$

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Iris has been recognized for her exceptional efforts at a tech start$-$up and has been awarded a significant performance incentive bonus, the largest among her colleagues. While thrilled about the recognition, she is worried about how much of her bonus will go toward taxes, as the additional income places her in a higher tax bracket. Which of the following statements are true?

I.$$ You understand Iris$$ concerns, but it is only the income that is in the next bracket that is subject to the higher tax rate.

II$.$You understand Iris$$ concerns as all of her income is going to be subject to the higher tax rate.

III.$$ Iris' income earned below the higher tax bracket remains taxed at the lower rates of tax.

IV$.$ Iris$$ Taxable Income will be lower if she makes a Tax$-$Free Saving Account $($TFSA$)$ contribution.

V$.$Moving to another tax bracket means that Iris$$ marginal tax rate has increased.

VI$.$ Moving to another tax bracket means that Iris$$ average tax rate has increased.

Question $16$Select one:

a$.$

I, IV$,$ V

b$.$

I, III, V$,$ VI

c$.$

I, III, IV$,$ VI

d$.$

II$,$ III, V

e$.$

III, V$,$ VI