Question
In: Accounting
Consider another hypothetical tax code. Assume the tax rate on the first $15,000 of taxable income...
Consider another hypothetical tax code. Assume the tax rate on the first $15,000 of taxable income is 10% and the tax rate on any additional income is 18%. The standard deduction ($6,350) and personal exemption ($4,050) still apply.
In other words:
• For taxable income from $0 to $15,000, you pay 10% of your
taxable income in taxes, plus
• For taxable income above $15,000, you pay 18% of your taxable income.
If your total income before exemptions were $10,000 how much would you pay in taxes? Then, write a function to model the total tax paid, T(x), with a total income of x dollars.
Solutions
Expert Solution
Let the total Income be $Y
Standard Deduction is $6350
Personal exemption is $4050
So total deduction available is $6350+$4050 =$10400
Net Income will be (Y-10400), let say it x
IF(x<1,0,IF(AND((x>0),x<15000),x*10%,(x-10000)*15%+1000))
ekkarill92 answered 2 years agoRelated Solutions
‘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.
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.
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...
Consider a corporation whose taxable income without state income tax is &n
Consider a corporation whose taxable income without state income
tax is
Gross revenue
$3,800,000
All expenses
$1,600,000
If the marginal federal tax rate is 35% and the marginal state
rate is 5%, compute the combined state and federal taxes using the
two methods.
State taxable income is $_________. (Round to the nearest
dollar.)
State income tax is $_________. (Round to the nearest
dollar.)
Federal taxable income is $____________. (Round to the
nearest dollar.)
Federal income tax is $__________....
Consider a corporation whose taxable income without state income tax is &n
Consider a corporation whose taxable income without state income
tax is
Gross revenue
$3,600,000
All expenses
$1,700,000
If the marginal federal tax rate is 35% and the marginal state
rate is 5%, compute the combined state and federal taxes using the
two methods.
State taxable income is $_________. (Round to the nearest
dollar.)
State income tax is $_________. (Round to the nearest
dollar.)
Federal taxable income is $____________. (Round to the
nearest dollar.)
Federal income tax is $__________....
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?
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
#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%
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