What Is the Amount of the Tax Liability for a Qualifying

question 52

Multiple Choice

What is the amount of the tax liability for a qualifying widower) with a dependent child and having taxable income of $18,355? All answers should be rounded to the nearest dollar. Use the appropriate ^{Tax Tables} or ^{Tax Rate Schedules}.

• A)$2,331.
• B)$1,838.
• C)$2,753.
• D)$1,836.

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Definitions:

Compounded Semi-Annually

Refers to the process where interest is added to the principal balance of an investment or loan twice a year, leading to interest on interest.

Compounded Quarterly

The process where interest is added to the principal sum of a deposit or loan every three months, leading to interest earnings on interest.

RRSP

RRSP stands for Registered Retirement Savings Plan, which is a savings plan sponsored by the Canadian government that allows individuals to save for retirement on a tax-deferred basis.

RRIF

A Registered Retirement Income Fund, a tax-deferred retirement plan in Canada designed to provide income to beneficiaries.