Question

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?

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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.

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 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 tax table

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 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 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) 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 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 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 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.)

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