Oakdale Fashions, Inc., had $315,000 in 2015 taxable income. Use the tax schedule in Table 2.3...

 

Transcribed Image Text:

Oakdale Fashions, Inc., had $315,000 in 2015 taxable income. Use the tax schedule in Table 2.3 to calculate the company's 2015 income taxes. What is the average tax rate? (Round your answer to 2 decimal places.) What is the marginal tax rate? Taxable income 315,000 table 2.3 Corporate Tax Rates as of 2015 Plus this Percentage Taxable Income Pay this Amount on Anything Over the Taxable Income (Bottom of Bracket) Base 50,001 $ 75,001 $ 100,001 $ 335,001 $ 10,000,001 $ 15,000,001 $ 18,333,334 (Top of Bracket) on Base Income 50,000 $ 75,000 $ 100,000 $ 335,000 $ 10,000,000 $ 15,000,000 $ 18,333,333 $ 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 15% 25% 34% 39% 34% 35% 38% 35% Complete the following analysis. Do not hard code values in your calculations. Tax on base income of bracket Tax on income within final bracket Total tax Average tax rate Marginal tax rate Oakdale Fashions, Inc., had $315,000 in 2015 taxable income. Use the tax schedule in Table 2.3 to calculate the company's 2015 income taxes. What is the average tax rate? (Round your answer to 2 decimal places.) What is the marginal tax rate? Taxable income 315,000 table 2.3 Corporate Tax Rates as of 2015 Plus this Percentage Taxable Income Pay this Amount on Anything Over the Taxable Income (Bottom of Bracket) Base 50,001 $ 75,001 $ 100,001 $ 335,001 $ 10,000,001 $ 15,000,001 $ 18,333,334 (Top of Bracket) on Base Income 50,000 $ 75,000 $ 100,000 $ 335,000 $ 10,000,000 $ 15,000,000 $ 18,333,333 $ 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 15% 25% 34% 39% 34% 35% 38% 35% Complete the following analysis. Do not hard code values in your calculations. Tax on base income of bracket Tax on income within final bracket Total tax Average tax rate Marginal tax rate

Answer rating: 100% (QA)

Tax on base Income of bracket 22250 Tax on income withi... View the full answer