Question

In 2017, NB Inc.’s federal taxable income was $317,000. Compute the required installment payments of 2018 tax in each of the following cases: (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

1. NB’s 2018 taxable income is $550,000.
2. NB’s 2018 taxable income is $935,000.
3. NB’s 2018 taxable income is $1,362,000.

Answer 1

a) NB's 2018 taxable income is $550,000
if taxable income is over $ 335,000 but not over $10,000,000, then tax is $113900+34% of the excess over $335,000
Therefore,
Tax	$        187,000
b) NB's 2018 taxable income is $935,000
if taxable income is over $ 335,000 but not over $10,000,000, then tax is $113900+34% of the excess over $335,000
Therefore,
Tax	$        317,900
c) NB's 2018 taxable income is $1,362,000
if taxable income is over $ 335,000 but not over $10,000,000, then tax is $113900+34% of the excess over $335,000
Therefore,
Tax	$        463,080

Formula spreadsheet