JAMB Mathematics 2015 Paper

Concept:Income tax is charged only on taxable income, which is the annual salary after removing all allowable deductions or allowances.Explanation:The man earns an annual salary of $\mathrm{N}2000$.His total allowances amount to $\mathrm{N}600$.These allowances are not taxed, so they are subtracted from the salary first.Taxable income $= \mathrm{N}2000 - \mathrm{N}600$Taxable income $= \mathrm{N}1400$The income tax rate is $5\%$.Tax payable $= 5\% \times \mathrm{N}1400$$= \frac{5}{100} \times 1400$$= \mathrm{N}70$Therefore, the yearly income tax expense he pays is $\mathrm{N}70$.Answer:C. $\mathrm{N}70$