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Catriona earns a salary of $87 210 and claims these deductions:

Travel and entertainment expenses

$650.25
Depreciation of home computer

$314.80
Membership of a professional association

$120.50
a Calculate Catriona's taxable income.
b Calculate Catriona's income tax payable.
c What is the amount of Catriona's Medicare levy?

Catriona earns a salary of $87,210\$87,210 and claims these deductions:\newlineTravel and entertainment expenses $650.25\$650.25\newlineDepreciation of home computer $314.80\$314.80\newlineMembership of a professional association $120.50\$120.50\newlinea Calculate Catriona's taxable income.\newlineb Calculate Catriona's income tax payable.\newlinec What is the amount of Catriona's Medicare levy?

Full solution

Q. Catriona earns a salary of $87,210\$87,210 and claims these deductions:\newlineTravel and entertainment expenses $650.25\$650.25\newlineDepreciation of home computer $314.80\$314.80\newlineMembership of a professional association $120.50\$120.50\newlinea Calculate Catriona's taxable income.\newlineb Calculate Catriona's income tax payable.\newlinec What is the amount of Catriona's Medicare levy?
  1. Calculate Total Deductions: Calculate Catriona's total deductions by adding travel and entertainment expenses, depreciation of home computer, and membership of a professional association.\newline$650.25+$314.80+$120.50=$1085.55\$650.25 + \$314.80 + \$120.50 = \$1085.55
  2. Subtract from Salary: Subtract the total deductions from Catriona's salary to find her taxable income.$87,210$1,085.55=$86,124.45\$87,210 - \$1,085.55 = \$86,124.45
  3. Calculate Income Tax: To calculate Catriona's income tax payable, we need to know the tax rates applicable to her taxable income. Since the problem does not provide a tax rate or bracket information, we cannot calculate the income tax payable without additional information.
  4. Calculate Medicare Levy: To calculate Catriona's Medicare levy, we need to know the percentage rate of the levy. Since the problem does not provide the Medicare levy rate, we cannot calculate the Medicare levy without additional information.

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