Calculate Leonard's monthly basic salary in Ksh.

a) Calculate Leonard's monthly basic salary in Ksh. Step 1: Calculate the Gross Tax. Gross Tax is the tax before deducting personal relief. Gross Tax = Net Tax + Personal Relief Gross Tax = Ksh. 5,512 + Ksh. 1,162 = Ksh. 6,674 Step 2: Calculate the tax paid in each band to determine the total taxable income. • Band 1: 10\% of Ksh. 9,680 0.10 × 9,680 = Ksh. 968 Remaining Gross Tax = 6,674 - 968 = Ksh. 5,706 • Band 2: 15\% of (Ksh. 18,800 - 9,680) = 15\% of Ksh. 9,120 0.15 × 9,120 = Ksh. 1,368 Remaining Gross Tax = 5,706 - 1,368 = Ksh. 4,338 • Band 3: 20\% of (Ksh. 27,920 - 18,800) = 20\% of Ksh. 9,120 0.20 × 9,120 = Ksh. 1,824 Remaining Gross Tax = 4,338 - 1,824 = Ksh. 2,514 • Band 4: 25\% of (Ksh. 37,040 - 27,920) = 25\% of Ksh. 9,120 0.25 × 9,120 = Ksh. 2,280 Remaining Gross Tax = 2,514 - 2,280 = Ksh. 234 • Band 5: The remaining tax of Ksh. 234 falls into the 30\% band. Let x be the amount of taxable income in this band. 0.30 × x = 234 x = (234)/(0.30) = Ksh. 780 Step 3: Calculate the Total Taxable Income. Total Taxable Income = 37,040 + 780 = Ksh. 37,820 Step 4: Calculate the monthly basic salary. Total Taxable Income = Basic Salary + Taxable Allowances Basic Salary = Total Taxable Income - Taxable Allowances Basic Salary = Ksh. 37,820 - Ksh. 15,220 = Ksh. 22,600 The monthly basic salary is Ksh. 22,600. b) Calculate his monthly net salary. Step 1: Calculate the total monthly deductions. Total Deductions = Net Tax + NHIF + Union Dues + Co-operative Shares Total Deductions = Ksh. 5,512 + Ksh. 320 + Ksh. 200 + Ksh. 7,500 Total Deductions = Ksh. 13,532 Step 2: Calculate the monthly net salary. Net salary is the total taxable income (gross salary) minus total deductions. Net Salary = Total Taxable Income - Total Deductions Net Salary = Ksh. 37,820 - Ksh. 13,532 = Ksh. 24,288 His monthly net salary is Ksh. 24,288. Send me the next one 📸