Use the following table to answer questions below: Range of taxable income  
Use the following table to answer questions below:
Range of taxable income Marginal rate
$ 0 to $ 50,000 15%
50,000 to 75,000 25
75,000 to 100,000 34
100,000 to 335,000 39
335,000 to 10,000,000 34
10,000,000 to 15,000,000 35
- Smith Company has a taxable income of $90,000. Calculate their actual income tax liability.
- Using your answer from question (3) above, calculate Smith’s effective tax rate at $90,000 taxable income.
- Jones Company has a taxable income of $12,000,000. They have an opportunity to invest in a project for which they would earn an additional $10,000 in taxable income. How much would incremental income would Jones realize from this project?
Homework Answers
Smith Company
actual income tax liability = (($50,000 - $0) * 15%) + (($75,000 - $50,000) * 25%) + (($90,000 - $75,000) * 34%)
actual income tax liability = $18,850
effective tax rate = actual income tax liability / taxable income
effective tax rate = $18,850 / $90,000 = 20.94%
Jones Company
As the taxable income is in the range of $10,000,000 to $15,000,000, the marginal tax rate is 35%.
Incremental income = additional taxable income * (1 - marginal tax rate)
Incremental income = $10,000 * (1 - 35%)
Incremental income = $6,500
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Use the following table to answer questions below:
Range of taxable
income  
TABLE 2.1 Corporate Tax Rate Schedule + + + + Range of taxable income 0 to...
TABLE 2.1 Corporate Tax Rate Schedule + + + + Range of taxable income 0 to $ 50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 Base tax $ 0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 Tax calculation (Marginal rate X amount over base bracket) (15% X amount over $ 0) (25 X amount over 50,000) (34 X amount over 75,000 amount over 100,000) amount over 335,000)...
Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess...
Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 $0 15% $50,000-$75,000 7,500 25 $75,000-$100,000 13,750 34 $100,000-$335,000 22,250 39 $335,000-$10,000,000 113,900 34 $10,000,000-$15,000,000 3,400,000 35 $15,000,000-$18,333,333 5,150,000 38 Over $18,333,333 6,416,667 35 Company Z has $90,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z’s tax liability? Assume a...
Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable income is...
Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable income is 16,000,000 It Pays This Plus This Percentage Average Tax If a Corporation's Amount on the on the Excess over the Rate at Taxable income is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $50,000 $ 0 15% 15.0% $50,000-$75,000 7,500 25 18.3 $75,000-$100,000 13,750 34 22.3 $100,000-$335,000 22,250 39 34.0 $335,000-$10,000,000 113,900 34 34.0 $10,000,000 $15,000,000 3,400,000 35 34.3 $15,000,000-$18,333,333...
"Florida Citrus Inc. (FCI) estimates its taxable income at $7,100,000. Use the Corporate Tax Schedule, Table...
"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 +...
The Anberlin Co. had $272194 in 2015 taxable income. Use the tax rates from Table 2.3....
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%
QUESTION 32 Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable...
QUESTION 32 Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable income is 83,000 It Pays This Plus This Percentage Average Tax If a Corporation's Amount on the on the Excess over the Rate at Taxable income is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $50,000 $ 0 15% 15.0% $50,000-$75,000 7,500 25 183 $75,000-$100,000 13,750 34 22.3 $100,000-$335,000 22,250 39 34.0 $335,000-$10,000,000 113,900 34 34.0 $10,000,000-$15,000,000 3,400,000 35 34.3...
The Anberin Co. had $280925 in 2015 taxable income. Use the tax rates from Table 2.3....
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+
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...
inwasted this question for a wrong answer can someone give me the correct answers please. updated...
inwasted this question for a wrong answer can someone give me the
correct answers please.
updated information
this is the only info provided on this exercise the chart is for
(a) and (b). nothing for (c) just show to resolve.
Exercise 17-26 (Algorithmic) (LO. 3) Compute the income tax liability for each of the following unrelated calendar year C corporations. Click here to access the tax table to use for part (a) and (b) of this problem. a. In 2017,...
The SGS Co. had $311,000 in taxable income. Use the rates from Table 2.3. (Do not...
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
TABLE 2.1 Corporate Tax Rate Schedule + + + + Range of taxable income 0 to $ 50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 Base tax $ 0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 Tax calculation (Marginal rate X amount over base bracket) (15% X amount over $ 0) (25 X amount over 50,000) (34 X amount over 75,000 amount over 100,000) amount over 335,000)...
Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable income is 16,000,000 It Pays This Plus This Percentage Average Tax If a Corporation's Amount on the on the Excess over the Rate at Taxable income is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $50,000 $ 0 15% 15.0% $50,000-$75,000 7,500 25 18.3 $75,000-$100,000 13,750 34 22.3 $100,000-$335,000 22,250 39 34.0 $335,000-$10,000,000 113,900 34 34.0 $10,000,000 $15,000,000 3,400,000 35 34.3 $15,000,000-$18,333,333...
"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 +...
QUESTION 32 Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable income is 83,000 It Pays This Plus This Percentage Average Tax If a Corporation's Amount on the on the Excess over the Rate at Taxable income is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $50,000 $ 0 15% 15.0% $50,000-$75,000 7,500 25 183 $75,000-$100,000 13,750 34 22.3 $100,000-$335,000 22,250 39 34.0 $335,000-$10,000,000 113,900 34 34.0 $10,000,000-$15,000,000 3,400,000 35 34.3...
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+
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...
inwasted this question for a wrong answer can someone give me the
correct answers please.
updated information
this is the only info provided on this exercise the chart is for
(a) and (b). nothing for (c) just show to resolve.
Exercise 17-26 (Algorithmic) (LO. 3) Compute the income tax liability for each of the following unrelated calendar year C corporations. Click here to access the tax table to use for part (a) and (b) of this problem. a. In 2017,...
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
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