Question

Suppose your firm earns $4 million in taxable income. What is the firm’s tax liability? What...

Suppose your firm earns $4 million in taxable income. What is the firm’s tax liability? What is the average tax rate? What is the marginal tax rate?

explain step by step

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Note Quote :"Since January 1, 2018, the nominal federal corporate tax rate in the United States of America is a flat 21% due to the passage of the Tax Cuts and Jobs Act of 2017."

Firm's taxable income = $4m

Flat Tax rate = 21%

Tax liability = $4m * 21% = $ 0.84m

Average tax rate = total tax liability / Taxable income = 0.84m / 4m = 21%

Marginal tax rate is the rate which is applicable to next taxable dollar.

In present case, as whole taxable income is taxed at flat 21%, so Marginal rate is also 21% as every dollar income is taxed at flat rate.

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
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?
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
Harvey, a single taxpayer, earns $150,000 in taxable income and $10,000 in interest from an investment...
Harvey, a single taxpayer, earns $150,000 in taxable income and $10,000 in interest from an investment in city of Presque Isle Bonds. Using the U.S. tax rate schedule for year 2020, what is his tax liability? What is his average tax rate? What is his effective tax rate? If Harvey earned an additional $40,000 of taxable income, what is his marginal tax rate on this income? Info: Over: $85,525 but not over: $163,300 the tax is: $14,605.50 plus 24% of...
2020 tax bracket schedule Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in...
2020 tax bracket schedule Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if, instead, he had $40,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. 2020 tax...
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...
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 = _________
Chuck, a single taxpayer, earns $57,500 in taxable income and $19,500 in interest from an investment...
Chuck, a single taxpayer, earns $57,500 in taxable income and $19,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. If Chuck earns an additional $39,500 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $39,500 of additional deductions?
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment...
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if, instead, he had $40,000 of additional deductions?
Chuck, a single taxpayer, earns $82,000 in taxable income and $17,750 in interest from an investment...
Chuck, a single taxpayer, earns $82,000 in taxable income and $17,750 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: If Chuck earns an additional $48,250 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if, instead, he had $48,250 of additional deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT