(Refer to Table 2.3.) Corporation Growth has $248,000 in taxable income, and Cor
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Question
(Refer to Table 2.3.) Corporation Growth has $248,000 in taxable income, and Corporation Income has $12,750,000 in taxable income.
What is the tax bill for each firm?
Suppose both firms have identified a new project that will increase taxable income by $10,000. How much in additional taxes will each firm pay?
Suppose both firms have identified a new project that will increase taxable income by $10,000. How much in additional taxes will each firm pay?
Tax Rate Taxable Income 50,000 75,000 100,000 100,001335,000 335,001-10,000,000 10,000,001- 15,000,000 15,000,001- 18,333,333 15% 25 34 39 34 35 38 35 0- 50,001- 75,001- 18,333,334+Explanation / Answer
Increase in Taxes for corporation growth =83870 - 79970 = 3900
Increase in taxs for corporation income = 3340900 -3337400 = 3500
Best of Luck. God Bless
Tax able income of Corporation growth 248,000 Tax bill of corporation growth Taxble Income Taxable income Tax Rate Taxable income * tax rate 0---50,000 50,000 15% 7500 50001-75000 25000 25% 6250 750001-100000 25000 34% 8500 100001-335000 148,000 39% 57720 3350001-10,000,000 79970 Total Tax 10,000,001-15,000,000 15,000,0001-18,333,333 Tax able income of Corporation income 12750000 Tax bill of corporation income Taxble Income Taxable income Tax Rate Taxable income * tax rate 0---50,000 50,000 15% 7500 50001-75000 25000 25% 6250 750001-100000 25000 34% 8500 100001-335000 235,000 39% 91650 3350001-10,000,000 6,650,000 34% 2261000 10,000,001-15,000,000 2750000 35% 962500 15,000,0001-18,333,333 3337400 Total Tax Tax able income of Corporation growth 258,000 (increase by 10,000) Tax bill of corporation growth Taxble Income Taxable income Tax Rate Taxable income * tax rate 0---50,000 50,000 15% 7500 50001-75000 25000 25% 6250 750001-100000 25000 34% 8500 100001-335000 158,000 39% 61620 3350001-10,000,000 83870 Total Tax 10,000,001-15,000,000 15,000,0001-18,333,333 Tax able income of Corporation income 12760000 (Increase by 10,000) Tax bill of corporation income Taxble Income Taxable income Tax Rate Taxable income * tax rate 0---50,000 50,000 15% 7500 50001-75000 25000 25% 6250 750001-100000 25000 34% 8500 100001-335000 235,000 39% 91650 3350001-10,000,000 6,650,000 34% 2261000 10,000,001-15,000,000 2760000 35% 966000 15,000,0001-18,333,333 3340900 Total TaxRelated Questions
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