Question

Determine the tax liability, the marginal tax rate, and the average tax rate for corporations with...

Determine the tax liability, the marginal tax rate, and the average tax rate for corporations with the following amounts of taxable income:

a) $45,000 b) $250,000 C) $600,000

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a.

Taxable Income = $45,000

Upto $50,000 of taxable income, tax rate is 15%.

Tax liability = $45,000 × 15%

= $6,750.

Tax Liability is $6,750.

Average tax rate is 15% and Marginal tax rate is 15%.

b.

Taxable Income = $250,000

Total tax liability is calculated in excel and screen shot provided below:

Total Tax liability is $80,749.

Maximum Tax rate company pays is 39%. So marginal tax rate is $80,749.

Average tax rate = $80,749 / $250,000

= 32.30%.

Average tax rate is 32.30%.

c.

Taxable Income = $600,000

Total tax liability is calculated in excel and screen shot provided below:

Total Tax liability is $203,999.

Maximum Tax rate company pays is 34%. So marginal tax rate is $203,999.

Average tax rate = $203,999 / $600,000

= 34.00%.

Average tax rate is 34.00%.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Determine the tax liability, marginal tax rate, and average tax rate (rounded to two decimal places)...
Determine the tax liability, marginal tax rate, and average tax rate (rounded to two decimal places) in each of the following cases. Use the tax tables to determine tax liability. Married taxpayers, taxable income of $38,862: Liability = _________ Marginal = _________ Average = _________ Single taxpayer, taxable income of $61,229: Liability = _________ Marginal = _________ Average = _________
Determine the tax liability, marginal tax rate, and average tax rate in each of the following...
Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the appropriate 2019 Tax Tables and Tax Rate Schedules. Married taxpayers, who file a joint return, have taxable income of $38,862. Single taxpayer, has taxable income of $61,229. (For all requirements, use the tax tables to compute tax liability. Round "Average tax rate" to 2 decimal places.) Tax Liability Marginal Tax Rate Average Tax Rate A. _________ _____________ % ______________ % B....
a. What are the tax liability, the marginal tax rate, and the average tax rate for...
a. What are the tax liability, the marginal tax rate, and the average tax rate for a married couple filing jointly with $68,900 taxable income? b. What are the tax liability, the marginal tax rate, and the average tax rate for a single individual with $214,200 taxable income? c. What are the tax liability, the marginal tax rate, and the average tax rate for a head of household with $463,300 taxable income?
a. What are the tax liability, the marginal tax rate, and the average tax rate for...
a. What are the tax liability, the marginal tax rate, and the average tax rate for a married couple filing jointly with $68,900 taxable income? b. What are the tax liability, the marginal tax rate, and the average tax rate for a single individual with $214,200 taxable income? c. What are the tax liability, the marginal tax rate, and the average tax rate for a head of household with $463,300 taxable income?
Determine marginal tax rate and average tax rate in each of the following cases. Single taxpayer,...
Determine marginal tax rate and average tax rate in each of the following cases. Single taxpayer, taxable income of $$35,438, tax liability of $$4,057. Married taxpayers, taxable income of $70,069, tax liability of $8,021.
Compute the 2017 tax liability and the marginal and average tax rates for the following taxpayers....
Compute the 2017 tax liability and the marginal and average tax rates for the following taxpayers. Click here to access the 2017 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to three decimal places before converting to a percentage (i.e. .67073 would be rounded to .671 and entered as 67.1%). a. Chandler, who files as a single taxpayer, has taxable income of $118,600. Tax liability: $ Marginal rate: % Average...
single taxpayer taxable income $33862 find liability ,marginal tax rate and average tax rate. use ftb...
single taxpayer taxable income $33862 find liability ,marginal tax rate and average tax rate. use ftb tax table
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each...
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (i.e. .67073 would be rounded to .6707 and entered as 67.07%). a. Chandler is single and reports taxable income of $149,000. Tax liability: $ -- Marginal...
Exercise 3-20 (Algorithmic) (LO. 6) Compute the 2018 Federal income tax liability and the marginal and...
Exercise 3-20 (Algorithmic) (LO. 6) Compute the 2018 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2018 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (i.e. .67073 would be rounded to .6707 and entered as 67.07%). a. Chandler is single and reports taxable income of $104,200....
Calculate the Average tax rate at both levels of income noted below. Calculate the marginal tax...
Calculate the Average tax rate at both levels of income noted below. Calculate the marginal tax rate when the income increases to $45,000 from $40,000. Show your work.                                     INCOME                                            INCOME TAX                                     $40,000                                             $3,000                                     $45,000                                             $4,050
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT