Question

In: Finance

1. The London Bridge Company had $630,125 in taxable income in the year ending September 30,...

1. The London Bridge Company had $630,125 in taxable income in the year ending September 30, 2017. Calculate the company’s tax using the following tax schedule.

Tax rate	Income Range
15%	(0 - $50,000)
25	(75,000–50,000)
34	(100,000–75,000)
39	(335,000–100,000)
34	(633,125–335,000)

A. $215,263

B. $214,243

C. $213,223

D. $211,435

2. The London Bridge Company had $630,125 in taxable income in the year ending September 30, 2017. Calculate the company’s marginal tax rate using the following tax schedule.

Tax rate	Income Range
15%	(0 - $50,000)
25	(75,000–50,000)
34	(100,000–75,000)
39	(335,000–100,000)
34	(633,125–335,000)

A. 15%

B. 25%

C. 34%

D. 39%

3. Which of the following is NOT a noncash item?

A. Depreciation

B. Taxes

C. Prepaid expenses

D. Prepaid taxes

Expert Solution

1
income range	tax rate	tax
0-$50000	15%	7500
$50000-$75000	25%	6250
$75000-100000	34%	8500
$100000-335000	39%	91650
$335000-630125	34%	100342.5
Total Tax		214243
companys tax is $214243

2
income of the company falls under $33500-633125 slab
so the marginal tax rate is 34%

3
taxes is a not a non cash item
Remaining all are non cash items
so the answer is B. Taxes

jeff jeffy answered 2 years ago

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