Question
In: Finance
Please refer to the following tax schedule. Taxable Income Tax Rate $ 0-50,000 15%...
Please refer to the following tax schedule.
Taxable Income
Tax Rate
$ 0-50,000 15%
$ 50,001-75,000 25%
$ 75,001-100,000
34%
$100,001-335,000
39%
If BOB's Inc. had $300,000 of taxable income last year selling tools
What is the average tax rate?
What is the marginal tax rate?
What is the firm’s tax liability?
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Solutions
Expert Solution
Calculation of firm Tax Liablity Tax Liablity
For First $50000 rate is 15 % $7500
For next $25000 rate is 25 % $6250
For next $25000 rate is 34 % $8500
For balance $200000 rate is 39 % $78000
Total tax liablity of firm is $100250
Calculation of average tax rate :
Average tax rate = Total tax liablity / total income *100
$100250/$300000*100 = 33.42%
Calculation of Marginal tax rate
Marginal tax rate is higher tax on incereaing income ie 39 %
jeff jeffy answered 1 year agoRelated Solutions
Please refer to the following tax schedule. Taxable Income Tax Rate $ 0-50,000 15%...
Please refer to the following tax schedule.
Taxable Income
Tax Rate
$ 0-50,000 15%
$ 50,001-75,000 25%
$ 75,001-100,000
34%
$100,001-335,000
39%
If BOB's Inc. had $300,000 of taxable income last year selling
tools
What is the average tax rate?
What is the marginal tax rate?
What is the firm’s tax liability?
SHOW ALL WORK
Corporate Tax Rate Schedule Taxable income brackets Tax calculation Base tax + (Marginal rate × amount...
Corporate Tax Rate Schedule Taxable income brackets Tax
calculation Base tax + (Marginal rate × amount over bracket lower
limit) $ 0 to $ 9,525 $ 0 + (10% × amount over $ 0) 9,525 to 38,700
$ 953 + (12% × amount over $ 9,525) 38,700 to 82,500 $ 4,454 + (22%
× amount over $ 38,700) 82,500 to 157,500 $ 14,090 + (24% × amount
over $ 82,500) 157,500 to 200,000 $ 32,090 + (32% × amount over...
TAXABLE INCOME TAX RATE $ 0----------------- $8,700 10% $ 8,700 -----------
TAXABLE INCOME
TAX RATE
$
0-----------------
$8,700
10%
$ 8,700
-----------
$
35,350
15%
$35,350-----------
$85,650
25%
$85,650------------
$178,650
28%
$178,650------------
$388,350
33%
OVER------------------
$388,350
35%
Use the Marginal Income Tax Rate above to compute the
following:
Tax Due on Taxable Income of $50,000; $200,000; and
$500,000.
Average Tax Rate (ATR) on Taxable Income of $50,000; $200,000;
$500,000.
Schedule Married Joint Taxable income over: But not over: The tax is: $0 $18,650 10% of...
Schedule Married Joint
Taxable income over: But not over: The tax is:
$0 $18,650 10% of taxable income
$18,650 $75,900 $1,865 plus 15% of the excess over
$18,650
$75,900 $153,100 $10,452.50 plus 25% of the excess over
$75,900
$153,100 $233,350 $29,752.50 plus 28% of the excess over
$153,100
$233,350 $416,700 $52,222.50 plus 33% of the excess over
233,350
$416,700 $470,700 $112,728.00 plus 35% of the excess over
$416,700
$470,700 - $131,628.00 plus 39.6% of the excess over
$470,700
During the...
The tax rates for a particular year are shown below: Taxable Income Tax Rate $0 –...
The tax rates for a particular year are shown below:
Taxable Income
Tax Rate
$0 – 50,000
15
%
50,001 – 75,000
25
%
75,001 – 100,000
34
%
100,001 – 335,000
39
%
What is the average tax rate for a firm with taxable income of
$122,513?
#eight The tax rates for a particular year are shown below: Taxable Income Tax Rate $0...
#eight
The tax rates for a particular year are shown below:
Taxable
Income
Tax Rate
$0
– 50,000
15
%
50,001 –
75,000
25
%
75,001 –
100,000
34
%
100,001 –
335,000
39
%
What is the average tax rate for a firm with taxable income of
$126,013?
20.00%
39.00%
25.71%
36.61%
28.20%
Cranberry Corporation has $3,444,000 of current year taxable income. Use Corporate tax rate schedule. If the...
Cranberry Corporation has $3,444,000 of current year taxable
income. Use Corporate tax rate schedule.
If the current year is a calendar year ending on December 31,
2017, calculate Cranberry's regular income tax liability.
If the current year is a calendar year ending on December 31,
2018, calculate Cranberry’s regular income tax liability.
If the current year is a fiscal year ending on April 30, 2018,
calculate Cranberry's regular income tax liability. (Do not round
intermediate calculations.)
2012 Corporate Tax Rate Schedule (partial) Taxable Income Greater Than But Less Than Or Equal To...
2012 Corporate Tax Rate Schedule (partial)
Taxable Income Greater Than
But Less Than Or Equal To
Tax Is
Of the amount exceeding
$0
$50,000
15%
$0
$50,000
$75,000
$7,500 + 25%
$50,000
$75,000
$100,000
$13,750 + 34%
$75,000
$100,000
$335,000
$22,250 + 39%
$100,000
JKEB Corporation has the following revenues and expenses for the
current tax year:
Sales revenue, net of returns . . . . . . . . . . . . . . . . .
....
Suppose the income tax rate schedule is 0 percent on the first $10,000; 10 percent on...
Suppose the income tax rate schedule is 0 percent on the first
$10,000; 10 percent on the next $20,000; 20 percent on the next
$20,000; 30 percent on the next $20,000; and 40 percent on any
income over $70,000. Family A earns $28,000 a year and Family B
earns $65,000 a year. Both receive a ten percent raise. What is the
marginal tax rate of each and what is the extra tax paid by each
after the raise?
A. Family...
Suppose that during 2022, tax legislation was passed that will lower Arndt’s effective tax rate to 15% beginning in 2023. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions):
2021
2022
Revenues
$
918
$
1,010
Expenses
774
830
Pretax accounting income (income statement)
$
144
$
180
Taxable income (tax return)
$
126
$
214
Tax rate: 25%
Expenses each year include $36 million from a two-year casualty insurance policy purchased in...
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