Find tax payable if ant

September 30, 2026Accounting

ScanSolve AI Answer

Answer

\text{Sh. } 106,200

6 steps

To find the tax payable, we will apply the given tax rates to the Adjusted Taxable Income of Sh. 554,000.

Calculate tax on the first Sh.
120,000.
$\text{Tax} = 120,000 \times 0.10 = \text{Sh. } 12,000$
Calculate tax on the next Sh.
120,000.
$\text{Tax} = 120,000 \times 0.15 = \text{Sh. } 18,000$
Calculate tax on the next Sh.
120,000.
$\text{Tax} = 120,000 \times 0.20 = \text{Sh. } 24,000$
Calculate tax on the next Sh.
120,000.
$\text{Tax} = 120,000 \times 0.25 = \text{Sh. } 30,000$
Calculate tax on the remaining income.
The total income taxed so far is $120,000 + 120,000 + 120,000 + 120,000 = \text{Sh. } 480,000$ .
Remaining income to be taxed at 30% is $554,000 - 480,000 = \text{Sh. } 74,000$ .
$\text{Tax} = 74,000 \times 0.30 = \text{Sh. } 22,200$
Calculate the total tax payable.
$\text{Total Tax Payable} = 12,000 + 18,000 + 24,000 + 30,000 + 22,200$ $\text{Total Tax Payable} = \boxed{\text{Sh. } 106,200}$

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