First let’s calculate taxable income in following manner
Earnings before interest and taxes - $23,458,933
Less: Interest charges - $1,645,123
Taxable Income- $21,813,810
Now calculate your tax liability (refer the Corporate Tax Rates schedule)
$21,813,810 falls into the $18,333,334 plus tax bracket which has 35% of tax rate
Therefore the corporate tax = marginal tax rate * taxable income
= 35% * $21,813,810
= $7,634,833.50
The company's marginal and average tax rates on taxable income are
Company’s marginal tax rate is 35%.
Average tax rate = Income tax Liability / Taxable income
Average Tax Rate = $7,634,833.50/$21,813,810 = 35.00%
Therefore company's marginal and average tax rates both are 35%
3.30 Menomonie Casino Company earned $23,458,933 before interest and taxes for the fiscal year ending March...
The Anberlin Co. had $272194 in 2015 taxable income. Use the tax rates from Table 2.3. Calculate the company’s marginal tax rate. Taxable Income Tax rate $0-50,000 15% 50,001-75,000 25% 75,001-100,000 34% 100,001-335,000 39% 335,001-10,000,000 34% 10,000,001-15,000,000 35% 15,000,001-18,333,333 38% 18,333,334 + 35%
The Anberin Co. had $280925 in 2015 taxable income. Use the tax rates from Table 2.3. Calculate the company's average tax rate. TABLE 2.3 Taxable Income Tax Rate Corporate Tax Rates 50,000 75,000 100,000 100,001-335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 15% 25 34 39 34 35 38 35 50,001 75,001 18,333,334+
please show all work 4. Calculating Taxes The Alexander Co. had $328,500 in taxable income. Using the rates from Table 2.3 in the chapter, calculate the company's income taxes. What is the average tax rate? What is the marginal tax rate? TAX RATE 15% 25 34 39 TAXABLE INCOME 0-50,000 50,001-75,000 75,001-100,000 100,001-335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 34 35 38 35 18,333,334+
The SGS Co. had $311,000 in taxable income. Use the rates from Table 2.3. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Calculate the company’s income taxes. Tax Rate TABLE 2.3 Corporate tax rates Taxable income 50,000 50,001 75,000 75,001 100,000 100,001 335,000 335,001- 10,000,000 10,000,001– 15,000,000 15,000,001– 18,333,333 18,333,334+ 15% 25 34 39 34 35 38 35
PDQ, Inc. expects EBIT to be approximately $11 million per year for the foreseeable future, and that it has 25,000 20-year, 8 percent annual coupon bonds outstanding. (Use Table 11.1.) What would the appropriate tax rate be for use in the calculation of the debt component of PDQ’s WACC? table 11.1 Corporate Tax Rates Tax Rat Taxable Income $0 - $50,000 50,001 - 75,000 15% 75,001 100,000 100,001 - 335,000 335,001 - 10,000,000 10,000,001 - 15,000,001 - 15,000,000 18,333,333 38...
A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: 1. What is the marginal tax rate for the company? 2. What is the total tax bill for the company, i.e., how much does the company have to pay in taxes (in $)? 3. What is the company's average tax rate? Intro A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: Tax rate 15% 25% 34% Taxable income ($) 0 50,000...
The SGS Co. had $120,000 in taxable income. Use the rates from Table 2.3. What is the average tax rate? (Do not round intermediate calculations and enter your answer as a percent rounde Average tax rate What is the marginal tax rate? (Enter your answer as a percent rounded to the nearest whole number, e.g., 32.) Marginal tax rate Taxable Income Tax Rato 0 50,000 75,000 75,001- 100,000 15% 25 34 39 34 35 38 35 50,001 100,001 335,000 335,001-...
Calculating Taxes. The Drydel Co. had $307,000 in taxable income. Using the tax rates from table below, calculate the company’s income taxes. Show your computation Tax Rate 15% Taxable income 0- 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 335,000 335,001 -10,000,000 10,000,001 - 15,000,000 15,000,001 - 16,333,333 18,333,334+
Problem 11-5 Tax Rate (LG11-3) Suppose that LilyMac Photography expects EBIT to be approximately $70,000 per year for the foreseeable future, and that it has 300 10-year, 4 percent annual coupon bonds outstanding. (Use Table 111) What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac's WACC? Tax rate % < Prey 5 of 10 Next > table 11.1 Corporate Tax Rates Taxable Income Tax Rate $0 $50,000 15% 50,001 75,000 25...
"Florida Citrus Inc. (FCI) estimates its taxable income at $7,100,000. Use the Corporate Tax Schedule, Table 9.12, to calculate how much FCI will pay in federal income taxes." TABLE 9·12 Corporate Tax Schedule for 2015 Taxable Income (X) $0-$50,000 50,001-75,000 75,001-100,000 100,001-335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 18,333,334 and up Tax Rate 15% 25% 34% 34% + 5% 34% 35% 35% + 3% 35% Tax Computation Formula $0 + 0.15X 7,500 + 0.25(X - $50,000) 13,750 + 0.34(X - 75,000) 22,250 +...