This English question involves literary analysis, grammar, or writing skills. The detailed response below provides a well-structured answer with supporting evidence and clear explanations.
ScanSolve AI Answer
Here's the solution to the problem: a) His taxable income in K£ p.a. Step 1: Calculate Mr. Kinoti's total monthly income in Kshs. Total monthly income = Basic salary + House allowance + Medical allowance Total monthly income = Kshs. 24,000 + Kshs. 5,000 + Kshs. 3,000 Total monthly income = Kshs. 32,000 Step 2: Calculate his total annual income in Kshs. Total annual income = Total monthly income × 12 Total annual income = Kshs. 32,000 × 12 = Kshs. 384,000 Step 3: Convert the annual income from Kshs. to K£. (Assume 1 K£ = 20 Kshs.) Taxable income in K£ p.a. = Total annual income in Kshs.20 Kshs./K£ Taxable income in K£ p.a. = (384,000)/(20) = 19,200 K£ p.a. K£ 19,200 b) The monthly tax that he paid. Step 1: Calculate the annual gross tax using the provided tax rates. • First K£ 5,600: 5,600 × 2 = Kshs. 11,200 • Next K£ (8,800 - 5,600) = 3,200: 3,200 × 3 = Kshs. 9,600 • Next K£ (12,000 - 8,800) = 3,200: 3,200 × 4 = Kshs. 12,800 • Next K£ (15,200 - 12,000) = 3,200: 3,200 × 5 = Kshs. 16,000 • Next K£ (18,400 - 15,200) = 3,200: 3,200 × 6 = Kshs. 19,200 • Remaining K£ (19,200 - 18,400) = 800: 800 × 7 = Kshs. 5,600 Total annual gross tax = 11,200 + 9,600 + 12,800 + 16,000 + 19,200 + 5,600 Total annual gross tax = Kshs. 74,400 Step 2: Calculate the annual personal relief. Annual personal relief = Kshs. 1,100 per month × 12 months Annual personal relief = Kshs. 13,200 Step 3: Calculate the annual net tax (PAYE). Annual net tax = Total annual gross tax - Annual personal relief Annual net tax = Kshs. 74,400 - Kshs. 13,200 = Kshs. 61,200 Step 4: Calculate the monthly tax paid. Monthly tax = Annual net tax12 Monthly tax = Kshs. 61,20012 = Kshs. 5,100 Kshs. 5,100 c) If his total deductions per month amounted to Kshs. 9,700, calculate his net income per month. Step 1: Identify the total monthly income. From part (a), Mr. Kinoti's total monthly income is Kshs. 32,000. Step 2: Calculate the net income per month. Net income per month = Total monthly income - Total monthly deductions Net income per month = Kshs. 32,000 - Kshs. 9,700 Net income per month = Kshs. 22,300 Kshs. 22,300 That's 2 down. 3 left today — send the next one.