Jeffrey Is a Self-Employed Carpenter

Jeffrey is a self-employed carpenter.He bills his clients $60,000 a year.Total business expenses amount to $10,000 a year.His only eligible income tax deduction is $5,000 for an RRSP contribution.If the first $36,000 of taxable income is taxed by the Federal Government at a rate of 15% and levels up to approximately $70,000 are taxed at 22%, what is his federal tax liability before considering tax credits?

A) $5,760
B) $6,750
C) $7,380
D) $9,900
E) $12,500

Correct Answer:

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