If You Have a Salary of $38 000, Medical Expenses

question 9

Multiple Choice

If you have a salary of $38 000, medical expenses of $1600, and an RRSP contribution of $4000 and the federal tax rate is 15 percent, what federal tax will you pay?

• A)$3500
• B)$4860
• C)$5013
• D)$4929

---

Definitions:

Bond Investment

Purchasing of bonds as a way to generate income through interest payments, with potential for capital gains.

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting any depreciation or amortization from the asset's original cost.

Available-For-Sale

A classification used in accounting for financial assets, denoting securities that a company plans to sell but not immediately or in the near term.

Vertically Integrated

A strategy where a company expands its operations into different stages of production within the same industry, from raw materials to finished products.