A company has $3,000,000 in taxable income. The corporate tax rate is 34%. What is the...

A company has $3,000,000 in taxable income. The corporate tax rate is 34%. What is the company's net income (or after-tax earnings)?

Expert Solution

	Tax	Calculation
On first $50,000	$ 7,500	50000*15%
On next $25,000	$ 6,250	25000*25%
On next $25,000	$ 8,500	25000*34%
On next $235,000	$ 91,650	235000*39%
On next $2,665,000	$ 906,100	2665000*34%

Total tax payable	$ 1,020,000

Net income:

= $3,000,000-$1,020,000

= $1,980,000

jeff jeffy answered 1 year ago

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