A man with an annual salary of N2000, has allowances of N600. If Income Tax is 5%. How much income tax expenses does he pay each year?
A
15
B
50
C
70
D
25
Verified Correct Answer: C.
Step-by-Step Mathematical Solution
His annual salary = N2000
His allowances = N600
So his taxable income = Annual salary − allowance
= N2000 − N600
= N1400
He pay at 5%
Then, his allowance income tax 5/100 \times 1400 = N70
Source: Myschool Past Questions Archive (Record #40628)