Corporation XYZ has taxable income of $120,000 for the current year and it pays tax based on the following rates:

 Required: 

a) What is the amount of tax that will be paid at the end of the current year? 

b) What is the marginal tax rate? 

c) What is the effective (or average) tax

Transcribed Image Text:

Corporate Taxable Income At Least But Less than Tax Rate 0 $ 50,000 24 15% 50,000 75,000 25% 75,000 100,000 34% 100,000 335,000 39% 335,000 10,000,000 34% 10,000,000 15,000 ,000 35% 15,000,000 18,333,333 38% 18,333,333 35% Corporate Taxable Income At Least But Less than Tax Rate 0 $ 50,000 24 15% 50,000 75,000 25% 75,000 100,000 34% 100,000 335,000 39% 335,000 10,000,000 34% 10,000,000 15,000 ,000 35% 15,000,000 18,333,333 38% 18,333,333 35%

Answer rating: 100% (QA)

a Computation of the Tax liability Tax Rate Taxable Income Explanation Amount I 15 0 500... View the full answer