"Florida Citrus Inc. (FCI) estimates its taxable income at $7,100,000. The company is considering expanding its...

"Florida Citrus Inc. (FCI) estimates its taxable income at $7,100,000. The company is considering expanding its product line by introducing a low-calorie sport drink for next year. It expects that the additional taxable income next year from this sport drink will be $1,800,000. Use the Corporate Tax Schedule, Table 9.12, to calculate how much FCI will pay in federal income taxes next year if it produces the low-calorie sport drink?"

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 $8,565,000	$ 2,912,100	8565000*34%

Total tax payable	$ 3,026,000

ekkarill92 answered 1 year ago

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