Kerry's total income this past year was $100,000 and she claimed a tax deduction of...

Kerry’s taxable income would be $98,000 ($100,000 - $2,000). Using the federal tax rates provided in the image, the first $48,535 of her income would be taxed at 15%, the next $48,534 at 20.5%, and the remaining $931 at 26%. This would result in a total federal tax payable of $18,754. You can see the calculation in detail below:

Taxable Income

Marginal Tax Rate

Federal Tax Payable

$0 - $48,535

15%

$7,280.25

$48,536 - $97,069

20.5%

$9,934.47

$97,070 - $98,000

26%

$539.80

Total

$18,754.52

Note: The final answer is rounded to the closest whole dollar.

Canadian Investment Funds Course, Unit 8, Section 8.2; [4]