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 agoRelated 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...
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