Question

(Corporate income tax) Boisjoly Productions had taxable income of $19.2 million. a. Calculate Boisjoly's federal income taxes by using the corporate tax rate structure in the popup window, b. Now calculate Boisjoly's average and marginal tax rates. c. What would Boisjoly's federal income taxes be if its taxable income was $29.8 million? d. Now calculate Boisjoly's average and marginal tax rates with taxable income of $29.8 million. a. Calculate Boisjoly's federal income taxes. The total tax due is $1. (Round to the nearest dollar.) 0 Data Table Corporate Tax Rates 15% $0-$50,000 25% $50,001—$75,000 34% $75,001—$10,000,000 35% over $10,000,000 Additional surtax: • 5% on income between $100,000 and $335,000 • 3% on income between $15,000,000 and $18,333,333 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) Print Done

Answer 1

a	Federal Income Tax Due
	$50,000	15%	$7,500
	$75,000	25%	$6,250
	$10,000,000	34%	$3,374,500
	$19,200,000	35%	$3,220,000
	Surcharge
	$235,000	5%	$11,750
	$3,333,333	3%	$100,000
	Total Tax Due		$6,720,000
b	Average Tax Rate		35%
	6720000/19200000
	Marginal Tax Rate		35%
c	Federal Income Tax Due
	$50,000	15%	$7,500
	$75,000	25%	$6,250
	$10,000,000	34%	$3,374,500
	$29,800,000	35%	$6,930,000
	Surcharge
	$235,000	5%	$11,750
	$3,333,333	3%	$100,000
	Total Tax Due		$10,430,000
d	Average Tax Rate		35%
	10430000/29800000
	Marginal Tax Rate		35%