Use excel and post screenshots of the formulas used to get the answers in whichever cell is selected.

Pre Tax Income = 10,000,000

Part 1: Use the Tax Foundation tax brackets for a single individual, calculate what a corporation with this pretax income would pay under a sole-proprietorship structure (i.e., its tax bill) and its average tax rate.

Part 2: The current corporate tax rate is a flat 21% and the Biden Administration is proposing a flat 28% rate (i.e., it does not have tiers or brackets). Calculate what the corporation should pay under the current corporate tax rate as well as under the proposed Biden Administration plan (i.e., its tax bill under each plan). Identify the company's tax provision for the same fiscal year. This can be found on the Income Statement under the pretax income line. Calculate the firm's actual tax rate paid in the fiscal year, calculated as Tax Provision divided by PreTax Income. Are the rates different? 

Note: If the tax provision for your firm is negative, that indicates the company received a tax refund (i.e., it did not pay taxes)
 

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2021 Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households For Married Individuals Filing Joint Returns 2021 Tax For Heads of For Single Filers Rate Households 10% Up to $9,950 Up to $19,900 Up to $14,200 $9,951 to $40,525 $19,901 to $81,050 $14, 201 to $54,200 12% $81,051 to $172,750 $40,526 to $86,375 $54, 201 to $86,350 22% $86,376 to $164,925 $172,751 to $329,850 $86,351 to $164,900 24% $164,926 to $209, 425 $329, 851 to $418,850 $164,901 to $209,400 32% $209, 426 to $523,600 $418, 851 to $628,300 $209, 401 to $523,600 35% 37% $523,601 or more $628,301 or more $523,601 or more 2021 Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households For Married Individuals Filing Joint Returns 2021 Tax For Heads of For Single Filers Rate Households 10% Up to $9,950 Up to $19,900 Up to $14,200 $9,951 to $40,525 $19,901 to $81,050 $14, 201 to $54,200 12% $81,051 to $172,750 $40,526 to $86,375 $54, 201 to $86,350 22% $86,376 to $164,925 $172,751 to $329,850 $86,351 to $164,900 24% $164,926 to $209, 425 $329, 851 to $418,850 $164,901 to $209,400 32% $209, 426 to $523,600 $418, 851 to $628,300 $209, 401 to $523,600 35% 37% $523,601 or more $628,301 or more $523,601 or more

Answer rating: 100% (QA)

Formula excel for above Answer 1 Pretax income 10000000 As per single filers T... View the full answer