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The Company would deduct DRD from its income before calculating corporate taxes on its income.
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DUCIULIUI Walu, page 33.) 32. Inky Inc. reported the following financial information in 2015. Operating income...
ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding depreciation) are 70% of sales. Net fixed...
ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding
depreciation) are 70% of sales. Net fixed assets are $205,000.
Depreciation amounted to 15% of net fixed assets. Interest expenses
are $100,000. The tax bill must be calculated using the corporate
income tax table in the text, and ABC Inc. paid 8% of net income in
dividends.
ABC Income Statement
2018
Sales...............................................................
Operating costs (excluding
depreciation).............
EBITDA..............................................................
Depreciation.......................................................
EBIT
..................................................................
Interest
Expense.................................................
EBT....................................................................
Taxes*** ................
Q-2 (10 points) Taxation of Corporate Earnings. Last year, ACF Inc. has $321,000 in taxable income...
Q-2 (10 points) Taxation of Corporate Earnings. Last year, ACF Inc. has $321,000 in taxable income and tax rates are as in the following table: Taxable income Tax Rate First $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $335,000 $335,000 - $10,000,000 $10,000,000 – $15,000,000 $15,000,000 - $18,333,333 Over $18,333,333 15% 25% 34% 39% 34% 35% 38% 35% Table 1: Corporate income tax rates. (a) What is the ACF Inc.'s average tax rate? (b) What is the ACF Inc.'s...
Owl is a closely held corporation owned by 8 shareholders (each has 12.5% of the stock)....
Owl is a closely held corporation owned by 8 shareholders (each
has 12.5% of the stock). Selected financial information provided by
Owl follows:
Taxable income $6,250,000
Positive AMT adjustments (excluding ACE adjustment) 600,000
Negative AMT adjustments (30,000) Tax preferences 5,000,000
Retained earnings 900,000 Accumulated E & P 2,000,000
ACE adjustment 750,000
a. If Owl is a C corporation, compute the following:
Regular Federal income tax liability:
$ Alternative minimum taxable income (AMTI):
Alternate minimum tax (AMT):
Please provide the calculations....
The Talley Corporation had a taxable income of $320000 from operations after all operating costs but...
The
Talley Corporation had a taxable income of $320000 from operations
after all operating costs but before (1) interest charges of
$64000, (2) dividends received of $9600 (3) dividends paid of
$16000 and (4) income taxes.
What are the firms income tax liabilitu and its after tax
income?
Income tax liability
After tax libility
What are the companys marginal and average tax rates on
taxable income?
Marginal tax rate %
Average tax rate %
TABLE 2-1 Corporate Tax Rates as...
Lintner Beverage Corp. reported the following information from their financial Operating income (EBIT) S20,000,000 Interest payments...
Lintner Beverage Corp. reported the following information from their financial Operating income (EBIT) S20,000,000 Interest payments on long-term debt S1,750,000 Dividend income $1,000,000 Calculate Lintner's total tax liability using the corporate tax schedule below Tax on Base Percentage on of Bracket Exss above Base SO-$50,000 S50,000-$75,000 S75,000-$100,000 S100,000-$335,000 S335,000-$10,000,000 S10,000,000-$15,000,000 S15,000,000-$18,333,333 Over S18,333,333 $0 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 S6,167,875 S6,492,500 S6,817,125 S7,157,982 S7,515,881
Sanderson Inc. sells minicomputers. During the past year the company’s sales were $3.07 million. The cost...
Sanderson Inc. sells minicomputers. During the past year the company’s sales were $3.07 million. The cost of its merchandise sold came to $1.87 million, and cash operating expenses were $340,000; depreciation expense was $93,000 and the firm paid $148,000 in interest on its bank loans. Also the corporation paid $28,000 in the form of dividends to its own common stockholders. Calculate the corporations tax liability by using the corporate tax rate structure below. Corporate Tax Rates: 15% $0-$50,000 25% $50,001-$75,000...
D&D, Inc. reported the following results for 2007. Calculate D&D’s taxable income and resulting tax liability...
D&D, Inc. reported the following results for 2007. Calculate D&D’s taxable income and resulting tax liability using the tax rates given. Sales $ Cost of sales 20,000,000 Operating expenses 8,000,000 Depreciation expense 1,000,000 Interest expense 500,000 Common stock dividends paid 1,500,000 Dividends received from Corporation Z 500,000 (D&D owns 10% of Corporation Z) ______________________________________________________________ 100,000 Corporate Tax Rates Taxable Income 15% 25% 34% 35% $0 - $50,000 $50,001 - $75,000 $75,001 - $10,000,000 over $10,000,000 Additional surtax of 5% on...
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.9 million. The firm's cost of...
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.9 million. The firm's cost of goods sold came to $2.4 million, its operating expenses excluding depreciation of $98,000 were $406,000, and the firm paid $151,000 in interest on its bank loans. Also, the corporation received 49,000 in dividend income from a company in which it owned less than 20 percent of its shares) but paid $23,000 in the form of dividends to its own common stockholders. Use the corporate...
number 3 (Corporate income tax) Last year Sanderson, Inc, had sales of $3.4 million. The firm's...
number 3
(Corporate income tax) Last year Sanderson, Inc, had sales of $3.4 million. The firm's cost of goods sold came to $2.1 million, its operating expenses excluding depreciation of $104,000 were $401,000, and the firm paid $150,000 in Interest on its bank loans. Also, the corporation received $47,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $30,000 in the form of dividends to its own common stockholders. Use...
The Dakota Corporation had a 2015 taxable income of $30,500,000 from operations after all operating costs...
The Dakota Corporation had a 2015 taxable income of $30,500,000 from operations after all operating costs but before (1) interest charges of $8,300,000, (2) dividends received of $730,000, (3) dividends paid of $5,150,000, and (4) income taxes. a. Use the tax schedule in Table 2.3 to calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability | $ 8,542,500 b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers...
ABC Inc. 2018 sales are $1,100,000. Operating costs (excluding
depreciation) are 70% of sales. Net fixed assets are $205,000.
Depreciation amounted to 15% of net fixed assets. Interest expenses
are $100,000. The tax bill must be calculated using the corporate
income tax table in the text, and ABC Inc. paid 8% of net income in
dividends.
ABC Income Statement
2018
Sales...............................................................
Operating costs (excluding
depreciation).............
EBITDA..............................................................
Depreciation.......................................................
EBIT
..................................................................
Interest
Expense.................................................
EBT....................................................................
Taxes*** ................
Q-2 (10 points) Taxation of Corporate Earnings. Last year, ACF Inc. has $321,000 in taxable income and tax rates are as in the following table: Taxable income Tax Rate First $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $335,000 $335,000 - $10,000,000 $10,000,000 – $15,000,000 $15,000,000 - $18,333,333 Over $18,333,333 15% 25% 34% 39% 34% 35% 38% 35% Table 1: Corporate income tax rates. (a) What is the ACF Inc.'s average tax rate? (b) What is the ACF Inc.'s...
Owl is a closely held corporation owned by 8 shareholders (each
has 12.5% of the stock). Selected financial information provided by
Owl follows:
Taxable income $6,250,000
Positive AMT adjustments (excluding ACE adjustment) 600,000
Negative AMT adjustments (30,000) Tax preferences 5,000,000
Retained earnings 900,000 Accumulated E & P 2,000,000
ACE adjustment 750,000
a. If Owl is a C corporation, compute the following:
Regular Federal income tax liability:
$ Alternative minimum taxable income (AMTI):
Alternate minimum tax (AMT):
Please provide the calculations....
The
Talley Corporation had a taxable income of $320000 from operations
after all operating costs but before (1) interest charges of
$64000, (2) dividends received of $9600 (3) dividends paid of
$16000 and (4) income taxes.
What are the firms income tax liabilitu and its after tax
income?
Income tax liability
After tax libility
What are the companys marginal and average tax rates on
taxable income?
Marginal tax rate %
Average tax rate %
TABLE 2-1 Corporate Tax Rates as...
Lintner Beverage Corp. reported the following information from their financial Operating income (EBIT) S20,000,000 Interest payments on long-term debt S1,750,000 Dividend income $1,000,000 Calculate Lintner's total tax liability using the corporate tax schedule below Tax on Base Percentage on of Bracket Exss above Base SO-$50,000 S50,000-$75,000 S75,000-$100,000 S100,000-$335,000 S335,000-$10,000,000 S10,000,000-$15,000,000 S15,000,000-$18,333,333 Over S18,333,333 $0 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 S6,167,875 S6,492,500 S6,817,125 S7,157,982 S7,515,881
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.9 million. The firm's cost of goods sold came to $2.4 million, its operating expenses excluding depreciation of $98,000 were $406,000, and the firm paid $151,000 in interest on its bank loans. Also, the corporation received 49,000 in dividend income from a company in which it owned less than 20 percent of its shares) but paid $23,000 in the form of dividends to its own common stockholders. Use the corporate...
number 3
(Corporate income tax) Last year Sanderson, Inc, had sales of $3.4 million. The firm's cost of goods sold came to $2.1 million, its operating expenses excluding depreciation of $104,000 were $401,000, and the firm paid $150,000 in Interest on its bank loans. Also, the corporation received $47,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $30,000 in the form of dividends to its own common stockholders. Use...
The Dakota Corporation had a 2015 taxable income of $30,500,000 from operations after all operating costs but before (1) interest charges of $8,300,000, (2) dividends received of $730,000, (3) dividends paid of $5,150,000, and (4) income taxes. a. Use the tax schedule in Table 2.3 to calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability | $ 8,542,500 b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers...
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