Question 7 Complete Mark 1.00 out of 1.00 P Fag Paddle Fans & More has a margina

Question

Question 7 Complete Mark 1.00 out of 1.00 P Fag Paddle Fans & More has a marginal tax rate of 34 percent and an average tax rate of 23.7 percent. If the firm earns $138,500 in taxable income, how much will it owe in taxes? Select one: O a. $31,366.67 O b. $31,500.00 O c. $32,824.50 O d.$39,957.25 O e. $47,090.00 question Question 8 Complete Mark 1.00 out of 1.00 Use the following tax table to answer this question: Taxable Income Tax Rate 50,000 15% 0- Flag question 50.001-75.000 25 34 39 34 75.001 100.000 100.001-335.000 35,001- 10.000.000 The Holiday Inn earned $177.284 in taxable income for the year. How much tax does the company owe on this income? Select one: a. $46,311.02 b. $48,490.76 Oc.$52,390.76 d.$59,998.8 e. $65,240.76

Explanation / Answer

1) calculation of tax: Tax= income* average tax rate        = 138500*0.237= $32824.5 So correct answer is c) $32824.50 2) Calculation of tax: for $50000= 50000*0.15= 7500 For 50001-75000= 25000*0.25= 6250 For 75001-100000= 25000*0.34= 8500 For 100001-177284= 77284*0.39=30140.76 Total tax= 7500+6250+8500+30140.76= 52390.76 So correct answer is c) $52390.76

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