Question

s for all entities ques for this year te hel l ementing the strate le c ts legislation that inche effective for the next calendar year W s chodation result in an increase in fed In what this lesslation create a conflict be e r to defer S10,000 income cant conartunity cost Discuss the strategic implications al e s n nin with l owing in with no signis LOS V wing independent cepted a position this year and devote LO 41 A Herunted from law school last center with a prominent firm of attorneys Mr. T is a 63. He plans to retire from business at the end of this year an his time to volunteer work and sailing, t hthe US Congress replaces the current individual and corporate te structures with a proportionate rate that applies to both types of Discuss the effect of this change in the federal law on tax strategies based on The entity variable The time period variable. The jurisdiction variable. The character variable. es to both types of taxpayers connect All applicable Application Problems are available with Connect LO 4-2 LO 4-2 Application Problems L Using the 2018 corporate tax rate: What are the tax liability, the marginal tax rate, and the average tax rate for a corporation with $248.300 taxable income? What are the tax liability, the marginal tax rate, and the average tax rate for a corporation with $39,253,000 taxable income? 2. Refer to the individual rate schedules in Appendix C. What are the tax liability, the marginal tax rate, and the average tax rate for a married individual filing separately with $42,500 taxable income? What are the tax liability, the marginal tax rate, and the average tax rate for a single individual with $150,500 taxable income! c. What are the tax liability, the marginal tax rate, and the average tax rate for a head of household individual with $275,000 taxable income? 2. What are the tax liability, the marginal tax rate, and the average tax rate for married couple filing jointly with $620,000 taxable income! 3. Refer to the individual rate schedules in Appendix C. What are the tax liability, the marginal tax rate, and the average tax rate for married couple filing jointly with $51.900 taxable income? LO 4-2 Whare indicine for the

Answer 1

LO 4-2 (1)

(a) As per corporate slab rate of 2018 its flat 21% as TCJA make corporate tax rate a flat 21% and it also eliminatesthe corporate alternative minimum tax

so $ 248300 *21%

tax liability = $ 52143

marginal tax rate = 21%

average tax rate = 21%

( B) taxable income=$39253000

tax liability = $ 39253000* 21%

=$8243130

marginal tax rate =21%

average tax rate =21%

Lo 4-2

( 2)as appendix c is not provided in question given so the further question cannot be solved as the tax year is also not mentioned

lo 4-1 is not clearly visible and lo 4-8 also as flash of camera is not able to see the question properly