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The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.01 million, with...
The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.01 million, with the cost of goods sold equal to $620,000. The firm paid interest of $179,000 and its cash operating expenses were $102,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $11,000 in dividends to its stockholders. Depreciation expense was $50,000. Use the corporate tax rates shown in the popup window
Taxable Income Marginal Tax Rate
$0-$50,000 15%
$50,001-$75,000 25%
$75,001-$100,000 34%
$100,001-$335,000 39%
$335,001-$10,000,000 34%
$10,000,001-$15,000,000 35%
$15,000,001-$18,333,333 38%
Over $18,333,333 35%
to compute the firm's tax liability.
What are the firm's average and marginal tax rates?
The Robbins Corporation's tax liability for the year is $?
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jeff jeffy answered 1 year agoRelated Solutions
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