Nashville imposes a net income tax on businesses operating within its jurisdiction. The tax equals 5%...
Nashville imposes a net income tax on businesses operating within its jurisdiction. The tax equals 5% of income up to $500,000 and 2% of income in excess of $500,000. Company K generated $750,000 net income this year. Compute the income tax that Company K owes to Nashville.
|
$30,000 |
||
|
$15,000 |
||
|
$26,250 |
||
|
$34,100 |
Homework Answers
Answer : $30000
=> The income tax that Company K owes to Nashville = $500000 * 5% + ($750000 - $500000) * 2% = $25000 + $5000 = $30000
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