Question

Cranberry Corporation has $3,240,000 of current year taxable income. If the current year is a calendar...

Cranberry Corporation has $3,240,000 of current year taxable income.

  1. If the current year is a calendar year ending on December 31, 2017, calculate Cranberry's regular income tax liability.
  2. If the current year is a calendar year ending on December 31, 2018, calculate Cranberry’s regular income tax liability.
  3. If the current year is a fiscal year ending on April 30, 2018, calculate Cranberry's regular income tax liability. (Do not round intermediate calculations.)

please don't guess, provide correct answer.

Homework Answers

Answer #1
Tax rate Taxable amount Tax
Current Year Dec 31 2017 35%               32,40,000 11,34,000
Current Year Dec 31 2018 21%               32,40,000     6,80,400 Tax rate changed to 21% from Tax year beginning from Jan 1 2018
Fiscal Year April 30 2018 35%               32,40,000 11,34,000
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