Question

In: Finance

#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%

Solutions

Expert Solution


Correct option is > 25.71%

Taxable Income

Rate

Allocable income

Cumulative income

Total tax

Rate

Income

Rate x Income

$0 – 50,000

15%

                      50,000

                      50,000

                        7,500

50,001 – 75,000

25%

                      25,000

                      75,000

                        6,250

75,001 – 100,000

34%

                      25,000

                   100,000

                        8,500

100,001 – 335,000

39%

                      26,013

                   126,013

                10,145.07

Total

                   126,013

                     32,395

Average tax rate = Total tax / Allocable income

Average tax rate = 32395 / 126013

Average tax rate = 25.71%

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

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?
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.
Taxation table Income Tax Standard personal income tax rates Income band Taxable amount Rate K1 to...
Taxation table Income Tax Standard personal income tax rates Income band Taxable amount Rate K1 to K39,600 first K39,600 0% K39,601 to 49,200 next K9,600 25% K49,201 to K74,400 next K25,200 30% Over K74,400 37.5% Income from farming for individuals K1 to K39,600 first K39,600 0% Over K39,600 10% Company Income Tax rates On income from manufacturing and other 35% On income from farming 10% Capital Allowances Implements, plant and machinery and commercial vehicles: Wear and Tear Allowance – Standard...
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
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
Based on the following table of the tax rates, what is the average tax rate for a firm with taxable income of $120,000?
Based on the following table of the tax rates, what is the average tax rate for a firm with taxable income of $120,000?Taxable Income ($)Tax Rate0 – 50,00015%50,000 – 75,00025%75,000 – 100,00034%100,000 – 335,00039%39%20%34%25%None of the above
Given the tax rates shown in the table, what is the average tax rate for a...
Given the tax rates shown in the table, what is the average tax rate for a firm with taxable income of $226,000? Taxable Income Tax Rate $0 - 50,000 15% $50,000 - $75,000 25% $75,000 - $100,000 34% $100,000 - $335,000 39% Group of answer choices 31.59 percent 36.79 percent 33.81 percent 39.00%
‘Income tax shall be paid on taxable income times tax rate. It makes sense to pay...
‘Income tax shall be paid on taxable income times tax rate. It makes sense to pay income tax for current year, but we should not be asked to account for deferred tax assets and liabilities’. Do you agree with this statement? Discuss your arguments.
) Marin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015...
) Marin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $303,000 36% $109,080 2016 322,000 31% 99,820 2017 395,000 31% 122,450 In 2018, Marin suffered a net operating loss of $812,000, which it elected to carry back. The 2018 enacted tax rate is 32% (and this rate is expected to be in use for the foreseeable future). Prepare Marin’s entry to record the effect of the loss carryback (and carryforward).
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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT