A company wants to set up a new office in a country where the corporate tax rate
Question:
A company wants to set up a new office in a country where the corporate tax rate is as follows: 15% of first $50,000 profits, 25% of next $25,000, 34% of next $25,000, and 39% of everything over $100,000. Executives estimate that they will have gross revenues of $500,000, total costs of $300,000, $30,000 in allowable tax deductions, and a one time business start-up credit of $8000. What is taxable income for the first year and how much should the company expect to pay in taxes?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (14 reviews)
Taxable Income Adjustable Gross Income Allowable ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
What is taxable income for an individual? How does it differ from taxable income for a corporation?
-
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of...
-
The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". As a result, the cemetery project will provide net cash inflow of...
-
Q8 Question: 9 A small particle of mass m moving inside a heavy, hollow and straight tube along the tube axis undergoes elastic collision at two ends. The tube has no friction and it is closed at one...
-
In below Exercises, find the slope and y-intercept (if possible) of the line. Sketch the line. 1. y = 5x + 3 2. y = -x 10 3. y = 3/4x -1 4. y = 2/3x + 2
-
Evans Industries wishes to select the best of three possible machines, each of which is expected to satisfy the firms ongoing need for additional aluminum-extrusion capacity. The three machinesA, B,...
-
An electric motor, of mass \(m=100 \mathrm{~kg}\) and operating speed \(=1800 \mathrm{rpm}\), is fixed at the middle of a clamped-clamped steel beam of rectangular cross section, as shown in Fig....
-
Mississippi Company has two decentralized divisions, Illinois and Iowa. Illinois always has purchased certain units from Iowa at $60 per unit. Because Iowa plans to raise the price to $80 per unit,...
-
Land improvements As of December 31 2022 : Beginning balance - P5,000,000 Estimated useful life - 10 years Depreciation method - 150% declining balance method Accumulated Depreciation - P2,781,473 a....
-
ROE and ROIC Baker Industries net income is $27000, its interest expense is $4000, and its tax rate is 40%. Its notes payable equals $23000, long-term debt equals $70000, and common equity equals...
-
Bill Alexander and his wife Valerie are both employed. Bill will have an adjusted gross income this year of $70,000. Valerie has an adjusted gross income of $2000 a month. Bill and Valerie have...
-
ARKO oil company purchased two large compressors for $125,000 each. One compressor was installed in the firm's Texas refinery and is being depreciated by MACRS depreciation . The other compressor was...
-
Silver Enterprises has acquired All Gold mining in a merger transaction. Construct the balance sheet for the new corporation if the merger is treated as a pooling of interests for accounting...
-
For a Proposed Infinite Google Tablet 3.3 Objectives Set specific marketing objectives. Include Objectives that correlate to: Product Category market share, Specific target market share, Market...
-
Jose Montenegro has been working for a producer of video games that sell through toy wholesalers to retailers. He knows all about the hard-to-play but hot-selling games sold by his company and by...
-
Conduct a first-hand field research on an off-campus local4 business or non-profit organization with 50 or more employees. The research is expected to turn out a paper focusing on practices of the...
-
State All the answers that are CORRECT. There will be no deduction for gift for YR1 and YR2 The loss available for offset against YR 3 profit will be $4000 The loss available for offset against YR 3...
-
Calculate the total exclusive properties to be included in the gross estate. Calculate the total common properties to be included in the gross estate What is the required percentage of the gross...
-
Consider the small set of numbers \[ 11,14,16,17,18,19,21,24 \] (a) Compute the 0.25 quantile of this sample using all nine different interpretations of equation (2.11) that are provided in the \(R\)...
-
In your audit of Garza Company, you find that a physical inventory on December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items...
-
During the 1997 Asian financial crisis, the Thai baht was trading at $0.02475 per Thai baht. The Thai baht is trading at $0.03093 per Thai baht now. What is the percentage change in the Thai baht's...
-
A drill press was purchased for $250,000. It was expected to last 10 years and to have a salvage value of $25,000. If the firms interest rate is 20%, what would be the capital cost for each year...
-
An airline is planning to make iPads available on some of its Boeing 747 air crafts with in-flight e-mail and Internet service on transoceanic flights. Passengers on these flights will be able to...
-
A newly constructed water treatment facility cost $2 million. It is estimated that the facility will need revamping to maintain the original design specification every 30 years at a cost of $1...
-
How can leaders effectively navigate the complexities of cross-cultural leadership to build cohesive and inclusive multinational teams ?
-
BB Co produced the COGM Schedule for the month-ending January 31, 2023. Below, certain amounts and line headings are missing from the COGM Schedule (shaded cells). Complete the COGM Schedule. Type...
-
P 4 - - Cost - Volume - Profit Relationship ( 2 / 7 ) AV Inc. has developed an A - Pod and an A - Tune which have become popular among young adults. Last year's cost and operating data for the two...
Study smarter with the SolutionInn App