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Question 1
112286

\[\begin{array}{ | c | c |}
\hline \text{Taxable Income} & \text{Tax Payable} \\
\hline \text{0-\$18200} & \text{\$ Nil} \\
\hline \text{\$18201-\$37000} & \text{\$Nil + 19 cents for each \$1 over \$18200} \\
\hline \text{\$37001-\$87000} & \text{\$3572 + 32.5 cents for each \$1 over \$37000} \\
\hline \text{\$87001-\$180000} & \text{\$19822 + 37 cents for each \$1 over \$87000} \\
\hline \text{\$180001 and over} & \text{\$54232 + 45 cents for each \$1 over \$180000} \\
\hline \end{array}\] 

Earnie's taxable income is $42,500. How much tax does Earnie pay?

$5359.50

\begin{aligned}
\text{Tax } &=3572+0.325(42500-37000) \\
&=\$ 5359.50
\end{aligned}

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