Question

Q2) Andrews Corporation has income from operations of $237,000. In addition, it received interest income of $23,700 and received dividend income of $32,000 from another corporation. Finally, it paid $10,900 of interest income to its bondholders and paid $43,300 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations. Round your answer to the nearest dollar

federal taxes) is taxed as ordinary income, while dividends are taxed at the same rate as long-term capital gain Projected 2018 tax rate schedules are shown for single individuals and married couples filing jointly. Average Tax Rate at Top of Bracket 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 22.0 14,089.50 24.0 32,089.50 32.0 45,689.50 35.0 150,689.50 37.0 If Your Taxable Income Is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 Over $500,000 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 Standard deduction for individual: $12,000 If Your Taxable Income Is Married couples Filing Joint Returns You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 1,905.00 12.0 8,907.00 22.0 28,179.00 24.0 64,179.00 32.0 91,379.00 35.0 161,379.00 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 17.1 20.4 22.8 26.9 37.0 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $108,000. She doesn't it stock that she had owned for five years for a net profit of $4,700. How much does Jenna owe to the IRS for taxe $ Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, intere our tax system encourages debt ✓ financing over equity ✓ financing. Depreciation expense is tax deducti fland search

Answer 1

	Particulars	Amount ($)
	Income from Operation	237,000
Add:	Interest	23,700
Add:	Dividend	32,000
Less:	Bondholders	10,900
Less:	Common StockHolders	43,300
	Total Taxable income	346,900
	Tax %	21%
	Tax Payable	72,849
As the entity is firm and federal Tax rate is 21% and there is no information of standard deduction of firm total tax payable will be $72,849