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Compute SWK Inc.’s tax liability for each of the following scenarios: (Use Corporate Tax Rate Table.)...

Compute SWK Inc.’s tax liability for each of the following scenarios: (Use Corporate Tax Rate Table.)

a. SWK’s taxable income is $60,000.

b. SWK’s taxable income is $275,000.

c. SWK’s taxable income is $15,500,000.

d. SWK’s taxable income for the year is $50,000,000.

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Expert Solution

Compute SWK Inc.’s tax liability
Tax rates
Taxable income from But Not More than Tax rate
$0 $50000 15%
$50001 $75000 25%
$75001 $100000 34%
$100001 $335000 39%
$335001 $10,000,000 34%
$10,000,001 $15,000,000 35%
$15000,001 $18,333,333 38%
$18,333,334 35%
(a)SWK’s taxable income is $60,000
Tax Liability =$50,000*15% +$10,000 *25% =$7500+$2500 =$10,000
(b) SWK’s taxable income is $275,000
Tax Liability =$50,000*15% + $25000 *25% +$25000*34% +$175000*39% =$7500+$6250+$8500+$68250 =$90500
© SWK’s taxable income is $15,500,000
Tax liability = $10,000,000*34% +$5000,000 *35% +$500,000*38% =$3,400,000+$1,750,000 +$190,000 =$5340,000
(D) SWK’s taxable income for the year is $50,000,000.
Tax Liability =$50,000,000*35% =$17,500,000

ekkarill92 answered 1 year ago
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