Moose Industries faces the following tax schedule:
Taxable Income Tax on Base of Bracket Percent on...
Moose Industries faces the following tax schedule:
Taxable Income Tax on Base of Bracket Percent on Excess Above
Base
Base Up to $50,000 $0 15%
$50,000-$75,000 7,500 25
$75,000-$100,000 13,750 34
$100,000-$335,000 22,250 39
$335,000-$10,000,000 113,900 34
$10,000,000-$15,000,000 3,400,000 35
$15,000,000-$18,333,333 5,150,000 38
Over $18,333,333 6,416,667 35
Last year the company realized $450,000 in operating income
(EBIT). Its annual interest expense is $1,500,000.
a) How much tax does the company owe on this income?
b) What is the average tax...
Griffey Communications recently realized $125,000 in operating
income. The company had interest income of $25,000 and...
Griffey Communications recently realized $125,000 in operating
income. The company had interest income of $25,000 and realized
$70,000 in dividend income. The company’s interest expense was
$40,000.
Taxable Income
Tax on Base of Bracket
Percentage on Excess above Base (%)
Up to $50,000
0
15
50,000-75,000
7,500
25
75,000-100,000
13,750
34
100,000-335,000
22,250
39
335,10,000,000
113,900
34
10,000,000-15,000,000
3,400,000
35
15,000,000-18,333,333
5,150,000
38
Over 18,333,333
6,416,667
35
Using the corporate tax schedule above, what is Griffey's tax
liability?
(please explain...
Problem 7-1
Accounting Periods (LO 7.1)
The Au Natural Clothing Factory has changed its year-end from...
Problem 7-1
Accounting Periods (LO 7.1)
The Au Natural Clothing Factory has changed its year-end from a
calendar year-end to March 31, with permission from the IRS. The
income for its short period from January 1 to March 31 is
$24,000.
Tax Rate Schedule for Corporations
Taxable Income Over
But Not Over
The Tax Is
Of the Amount Over
0
$50,000
15%
0
$50,000
75,000
$7,500 + 25%
$50,000
75,000
100,000
13,750 + 34%
75,000
100,000
335,000
22,250 + 39%...
2013 Corporate Tax Rates
If a Corporation's
Taxable Income Is
It Pays This
Amount on the...
2013 Corporate Tax Rates
If a Corporation's
Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $50,000
$0
15.0%
15.0%
$50,000 - $75,000
7,500
25.0
18.3
$75,000 - $100,000
13,750
34.0
22.3
$100,000 - $335,000
22,250
39.0
34.0
$335,000 - $10,000,000
113,900
34.0
34.0
$10,000,000 - $15,000,000
3,400,000
35.0
34.3
$15,000,000 - $18,333,333
5,150,000
38.0
35.0...
Windham Inc. is preparing tax filings for 2019. Assume the
following tax table is applicable:
Tax...
Windham Inc. is preparing tax filings for 2019. Assume the
following tax table is applicable:
Tax on Base
Percentage on
Taxable Income
of Bracket
Excess above Base
Up to $50,000
$ 0
15%
$50,000−$75,000
7,500
25
$75,000−$100,000
13,750
34
$100,000−$335,000
22,250
39
$335,000−$10,000,000
123,900
34
$10,000,000−$15,000,000
3,400,000
35
$15,000,000−$18,333,333
5,150,000
38
Over $18,333,333
6,416,667
35
The income statement shows that the taxable income is $290,500
in 2019.
a. What is Windham Inc. tax liability? (10 points) (Do not round
intermediate...
2013 Individual Tax Rates
Single Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount...
2013 Individual Tax Rates
Single Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...
Microchip Inc. had the following profits and losses in the years
indicated.
2013
$ 5,500,000
2014
350,000...
Microchip Inc. had the following profits and losses in the years
indicated.
2013
$ 5,500,000
2014
350,000
2015
(4,000,000)
Corporate Income Tax Schedule
Income ($)
Rate (%)
0 - 50,000
15
50,000 - 75,000
25
75,000 - 100,000
34
100,000 - 335,000
39
335,000 - 10,000,000
34
10,000,000 - 15,000,000
35
15,000,000 - 18,333,333
38
Over 18,333,333
35
How much federal tax will it eventually pay for 2013? The
corporate rate schedule is the same for all three years. Use carry...
Chapter 2 - Master it!
Using Excel to find the
marginal tax rate can be accomplished...
Chapter 2 - Master it!
Using Excel to find the
marginal tax rate can be accomplished using the VLOOKUP function.
However, calculating the total tax bill is a little more difficult.
Below we have shown a copy of the IRS tax table for an individual.
Often, tax tables are presented in this format.
If taxable
income is
over --
But not
over --
The tax is:
$0
$9,075
10% of the amount over $0
9,075
36,900
$907.50 plus 15% of...
Company A has $82,900 in taxable income, and Company B has $4.0
million in taxable income....
Company A has $82,900 in taxable income, and Company B has $4.0
million in taxable income. Using the tax rates from the Table
below. What is the difference between the tax bills of these two
firms? (round to nearest dollar)
Taxable Income
Tax Rate
$
0-50,000
15%
$
50,001-75,000
25%
$
75,001-100,000
34%
$
100,001-335,000
39%
$
335,001-10,000,000
34%
$
10,000,001-15,000,000
35%
$
15,000,001-18,333,333
38%
$
18,333,334+
35%
A. Robbins Corporation is a retail dealer for electrical
equipment. The taxable income is
$701,500. Calculate...
A. Robbins Corporation is a retail dealer for electrical
equipment. The taxable income is
$701,500. Calculate the tax liability.
Corporate Tax Rates
15% $ 0–$50,000
25% $ 50,001–$75,000
34% $75,001–$10,000,000
35% over $10,000,000
Additional surtax:
•5% on income between $100,000 and $335,000.
•3% on income between $15,000,000 and $18,333,333.
B. ‘Taxes are a fact of life, and businesses, like individuals,
must pay taxes on Income’ –
Elucidate.