Homework Answers
Step-1, Calculation of Taxable Income
Taxable income = Operating Income + Interest Received – Interest Paid + Taxable Dividend Received
= $250,000 + 10,000 – 45,000 + [$20,000 x (1 – 0.30)]
= $250,000 + 10,000 – 45,000 + 6,000
= $210,000
Step-2, Calculation of Corporation’s Tax Liability
Tax for the first $50,000 = $7,500 ($50,000 x 15%)
Tax for the next $25,000 = $6,250 ($25,000 x 25%)
Tax for the next $25,000 = $8,500 ($25,000 x 34%)
Tax for the Last $121,000 = $47,190 ($121,000 x 39%)
Therefore, Corporation’s Tax Liability
= $7,500 + 6,250 + 8,500 + 47,190
= $69,440
“Corporation’s Tax Liability = $69,440”
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Please do #28 and show work thanks
28. Your corporation has the following cash flows: Operating...
The Talley Corporation had a taxable income of $320000 from operations after all operating costs but...
The
Talley Corporation had a taxable income of $320000 from operations
after all operating costs but before (1) interest charges of
$64000, (2) dividends received of $9600 (3) dividends paid of
$16000 and (4) income taxes.
What are the firms income tax liabilitu and its after tax
income?
Income tax liability
After tax libility
What are the companys marginal and average tax rates on
taxable income?
Marginal tax rate %
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TABLE 2-1 Corporate Tax Rates as...
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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.
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QUESTION 32 Using the corporate tax rate table, calculate the taxable amount if a corporation's taxable...
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Problem below was previously posted with incorrect answers. Please show calculation and answer all the questions....
Problem below was previously posted with incorrect answers.
Please show calculation and answer all the questions. I've attached
the tax rate schedule. Thank you.
Plum Corporation will begin operations on January 1. Earnings
for the next five years are projected to be relatively stable at
about $81,250 per year. The shareholders of Plum are in the 33% tax
bracket and dividends are taxable at 15%.
Click here to access the tax rate schedule to use for this
problem.
If an...
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Owl is a closely held corporation owned by 8 shareholders (each has 12.5% of the stock)....
Owl is a closely held corporation owned by 8 shareholders (each
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Owl follows:
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Positive AMT adjustments (excluding ACE adjustment) 600,000
Negative AMT adjustments (30,000) Tax preferences 5,000,000
Retained earnings 900,000 Accumulated E & P 2,000,000
ACE adjustment 750,000
a. If Owl is a C corporation, compute the following:
Regular Federal income tax liability:
$ Alternative minimum taxable income (AMTI):
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The
Talley Corporation had a taxable income of $320000 from operations
after all operating costs but before (1) interest charges of
$64000, (2) dividends received of $9600 (3) dividends paid of
$16000 and (4) income taxes.
What are the firms income tax liabilitu and its after tax
income?
Income tax liability
After tax libility
What are the companys marginal and average tax rates on
taxable income?
Marginal tax rate %
Average tax rate %
TABLE 2-1 Corporate Tax Rates as...
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,...
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...
Problem below was previously posted with incorrect answers.
Please show calculation and answer all the questions. I've attached
the tax rate schedule. Thank you.
Plum Corporation will begin operations on January 1. Earnings
for the next five years are projected to be relatively stable at
about $81,250 per year. The shareholders of Plum are in the 33% tax
bracket and dividends are taxable at 15%.
Click here to access the tax rate schedule to use for this
problem.
If an...
The Dakota Corporation had a 2015 taxable income of $30,500,000 from operations after all operating costs but before (1) interest charges of $8,300,000, (2) dividends received of $730,000, (3) dividends paid of $5,150,000, and (4) income taxes. a. Use the tax schedule in Table 2.3 to calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability | $ 8,542,500 b. What are Dakota's average and marginal tax rates on taxable income? (Round your answers...
Owl is a closely held corporation owned by 8 shareholders (each
has 12.5% of the stock). Selected financial information provided by
Owl follows:
Taxable income $6,250,000
Positive AMT adjustments (excluding ACE adjustment) 600,000
Negative AMT adjustments (30,000) Tax preferences 5,000,000
Retained earnings 900,000 Accumulated E & P 2,000,000
ACE adjustment 750,000
a. If Owl is a C corporation, compute the following:
Regular Federal income tax liability:
$ Alternative minimum taxable income (AMTI):
Alternate minimum tax (AMT):
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