Following this schedule, you can calculate Marginal Tax and Total Tax Tex calcalati Meginal ratex anont...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Following this schedule, you can calculate Marginal Tax and Total Tax Tex calcalati Meginal ratex anont over hack) (35% X 125 (34 P Rangs of taxable income S 0550,000 50,000 75,000 75,000 100,000 335,000 100,000 335,000 to 10,000,000 10,000,000 15,000,000 15,000,000 18,333,333 Over 18,333,333 S $300,000 $22.250 +39 % x - $22,250 (39% x = $22,250 + $78,000 Bawat Avg Tax = $100.250 $300,000 7,500 13,750 22.250 113,900 (34 (s 3 6,416667- 135 3,400,000 5,150,000 = 33.41% Marginal Tax Rate refers to the rate at which Additional Income is taxed. This rate is creeping and inching; the more the corporation ears, the more tax it pays. For example Marginal Tax for a company that earns $300,000 is calculated as the following $300,000 fits the range on the schedule between 100.000 and $335.000. The marginal tax rate is 39%, on any amount over $100,000 Base Tax + (Marginal Rate x amount over base bracket) = 33416 x 100 er The total tax would then be the Base Tax plus the Marginal Tax - $22,250 + $78,000 - $100,250 ($300,000-100,000)) $200,000) Average Tax Rate can be calculated when total tax is divided by total income/earnings. For example. A corporation with taxes of 100,250 and total earnings of $300,000 would have an Average Tax Rate of 33.41% 10,000 75,000 100,000 335,000 10,000.00m 15,000,000 183, 1. The Tax liability of a corporation with ordinary Income of $225,000 is $76,250 A B. $77,500 C. $71,000 D $75,225 2. The Tax liability of a corporation with ordinary income of $17,500,000 in A $6,294,250 B$6,100,000 C. $6.510,000 D. $6,111,000 Following this schedule, you can calculate Marginal Tax and Total Tax Tex calcalati Meginal ratex anont over hack) (35% X 125 (34 P Rangs of taxable income S 0550,000 50,000 75,000 75,000 100,000 335,000 100,000 335,000 to 10,000,000 10,000,000 15,000,000 15,000,000 18,333,333 Over 18,333,333 S $300,000 $22.250 +39 % x - $22,250 (39% x = $22,250 + $78,000 Bawat Avg Tax = $100.250 $300,000 7,500 13,750 22.250 113,900 (34 (s 3 6,416667- 135 3,400,000 5,150,000 = 33.41% Marginal Tax Rate refers to the rate at which Additional Income is taxed. This rate is creeping and inching; the more the corporation ears, the more tax it pays. For example Marginal Tax for a company that earns $300,000 is calculated as the following $300,000 fits the range on the schedule between 100.000 and $335.000. The marginal tax rate is 39%, on any amount over $100,000 Base Tax + (Marginal Rate x amount over base bracket) = 33416 x 100 er The total tax would then be the Base Tax plus the Marginal Tax - $22,250 + $78,000 - $100,250 ($300,000-100,000)) $200,000) Average Tax Rate can be calculated when total tax is divided by total income/earnings. For example. A corporation with taxes of 100,250 and total earnings of $300,000 would have an Average Tax Rate of 33.41% 10,000 75,000 100,000 335,000 10,000.00m 15,000,000 183, 1. The Tax liability of a corporation with ordinary Income of $225,000 is $76,250 A B. $77,500 C. $71,000 D $75,225 2. The Tax liability of a corporation with ordinary income of $17,500,000 in A $6,294,250 B$6,100,000 C. $6.510,000 D. $6,111,000
Expert Answer:
Answer rating: 100% (QA)
To calculate the tax liability for a corporation based on the provided marginal tax rate schedule yo... View the full answer
Related Book For
Principles Of Managerial Finance
ISBN: 9781292018201
14th Global Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
(10 points) Given that ry + xy = 1. 1. Find a solution of the differential equation that satisfies the initial condition y(1) = 10. Answer: y = 2. Find a solution of the differential equation that...
-
Use a computer and generate 50 random samples, each of size n = 28, from a normal probability distribution with = 19 and = 4. a. Calculate the z corresponding to each sample mean that would result...
-
What is the reasoning behind using the average annual return as a measure of expected return?
-
What is a metastable atomic state?
-
\(\lambda_{1}\) and \(\lambda_{2} <0\left(\lambda_{1}, \lambda_{2} ight.\) : real and distinct \()\) a. Unstable node b. Saddle point c. Node d. Focus or spiral point e. Stable node
-
Casper Corporation has collected the following information after its first year of sales. Net sales were $1,600,000 on 100,000 units; selling expenses $240,000 (40% variable and 60% fixed); direct...
-
if there is a no seasonal effect, about how big, on average, would you expect the x2 statistic to be (what is the mean of the x2 distribution)?
-
Susan Jones would like her investment portfolio to be selected from a combination of three stocks Alpha, Beta, and Gamma. Let variables A, B, and G denote the percentages of the portfolio devoted to...
-
Q. 6. Why is marketing important in our society? Why should you study marketing? b) Identify and explain the process of marketing planning.
-
1. What is the syntax for the while statement? 2. When using a while loop to read data from a user, what is a sentinel value? 3. When reading data from a user in the "general form", or the pumping...
-
Input Validation The idea of input validation means that we want to be sure that the input the user provides is actually valid for use in our program. If it is, we know that we can use it safely in...
-
(a) Write function definitions to do the following tasks: i. Function calcLatest Balance () will receive the account balance, calculate the latest account balance after 5% dividend and return the...
-
A tree nursery is comparing three shipping alternatives. The first alternative is to use a common carrier. There is no fixed cost with this alternative but the variable cost per shipment is $900. The...
-
9 Write the HTML code for designing this below Account Opening form layout(10 marks) Personal Details Name* Name of (Father/Guardian) Date of Birth * (dd-mm-yy) ACCOUNT OPENING FORM Gender*...
-
The model of supply chain operations is characterized by four elements, namely planning sourcing, making and delivery. Name one company in Ghana and demonstrate how the four elements of the supply...
-
Based on the scenario described below, generate all possible association rules with values for confidence, support (for dependent), and lift. Submit your solutions in a Word document (name it...
-
Lahey Industries has outstanding a $1,000 par-value bond with an 8% coupon interest rate. The bond has 12 years remaining to its maturity date. a. If interest is paid annually, find the value of the...
-
Assume that the risk-free rate, RF, is currently 9% and that the market return, rm, is currently 13%. a. Draw the security market line (SML) on a set of nondiversifiable risk (x axis)required return...
-
Irvin Enterprises is considering the purchase of a new piece of equipment to replace the current equipment. The new equipment costs $75,000 and requires $5,000 in installation costs. It will be...
-
What are the two categories of pattern generality? Explain.
-
Analogy approach makes people end up building templates rather than building patterns. Explain.
-
Explain the concept behind constructing analysis pattern by using stability approach.
Study smarter with the SolutionInn App