Question

QUESTION 7 Assume that a business has earned Net Income of $200,000 in a given year and that the corporate tax rate is 21%. I
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Tax on the Profit of the corporation is 21%

Net income of the corporation = $200000

Tax on net income = $200000*21% = $42000

Net income after tax = $200000 - $42000 = $158000(profit available to owner after tax)

Add a comment
Know the answer?
Add Answer to:
QUESTION 7 Assume that a business has earned Net Income of $200,000 in a given year...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 12 Which of the following is an advantage of the sole proprietorship? A. Limited liability...

    QUESTION 12 Which of the following is an advantage of the sole proprietorship? A. Limited liability for its owner B. Double taxation on its owner C. No significant legal requirements for starting the business D. Ability to sell shares of ownership to the investing public QUESTION 7 6.25 points Save Answer Assume that a business has earned Net Income of $200,000 in a given year and that the corporate tax rate is 21%. Individuals are taxed at a rate of...

  • Income earned by C corporations is taxed​ twice, once when the income is earned and again...

    Income earned by C corporations is taxed​ twice, once when the income is earned and again when it is distributed. If​ so, how is it possible that operating a business as a C corporation can reduce taxes. A. The C corporation should deduct all distributions as salary expenses to reduce taxable​ income, therefore reducing the taxes. B. It is not possible to reduce taxes in a C​ corporation, double taxation is a disadvantage of this type of corporation. C. Up...

  • Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...

    Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability...

  • Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...

    Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2018 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...

  • Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...

    Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2018 individual tax rate schedule to use for this problem. [ https://imgur.com/a/SOIZ22u ] Assume the corporate tax rate is...

  • urple Company has $200,000 in net income for 2020 before deducting any compensation or other payment...

    urple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...

  • urple Company has $200,000 in net income for 2020 before deducting any compensation or other payment...

    urple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...

  • The following is a list of figures for a given year in billions of dollars. (a)...

    The following is a list of figures for a given year in billions of dollars. (a) GDP by the Expenditure Method (b) GDP by the Income Method $ 70 220 160 50 120 500 Transfer payments Government purchases Personal taxes Corporate income taxes Indirect taxes less subsidies Undistributed corporate profits Net income of farm and unincorporated businesses Wages, salaries, and supplementary labour income Personal consumption expenditures Capital consumption allowance Exports Profits of corporations and government enterprises before taxes Interest and...

  • Purple Company has $200,000 in net income for 2019 before deducting any compensation or other payment...

    Purple Company has $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12.200 standard deduction for 2019. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...

  • Problem 2-23 (LO. 1) Purple Company has $200,000 in net income for 2019 before deducting any...

    Problem 2-23 (LO. 1) Purple Company has $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten Kirsten is single and she claims the $12,200 standard deduction for 2019. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after tax income for each of the following situations. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the corporate tax...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT