Corporations face the following tax schedule: 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% $335,000-$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% Company Z has $65,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends. $18,736 $17,225 $15,110 $11,786 $18,888
Corporations face the following tax schedule: 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% $335,000-$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% Company Z has $65,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends. $18,736 $17,225 $15,110 $11,786 $18,888
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 9MC: Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest...
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100%
Corporations face the following tax schedule:
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% |
$335,000-$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% |
Company Z has $65,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from
What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends.
- $18,736
- $17,225
- $15,110
- $11,786
- $18,888
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