Question

Find the tax payments for a company with taxable income of $1,200,000. Show your work.

Answer 1

The taxable income should be multiplied by the appropriate tax rate in order to get the tax payment amount. The corporate tax rate is flat in the US; such rate is 21% on all taxable income since 01/01/2018.

Tax payment = Taxable income × Corporate tax rate

                        = $1,200,000 × 21%

                        = $252,000 (Answer)