What is the company\'s tax, and effective tax rate for a taxable income of $250,

ID: 1162191 • Letter: W

Question

What is the company's tax, and effective tax rate for a taxable income of $250,000 respectively? a) 39,000 & 15.6% b) 61,250 & 24.5% c) 80,750 & 32.3% d) 58,500 & 23.4% e) None of the above Save Question 2 (4 points) If an equipment is classified as 3-year property and its initial cost is $300,000, determine the depreciation amount for the first year under MACRS. a) 9,999,000 b) 99,990 c) 900,000 d) 4,443,000 e) 44,430 Save Question 3 (3 points) When evaluating economic desirability of a single investment or

Explanation / Answer

1) Solution: 80,750 and 32.3%

Working:

Percentage

Tax slab

Amount

15%

0 to 50,000

7500

25%

50,000 to 75,000

13750

34%

75,000 to 100,000

22250

39%

100,000 to 250,000

80750

Solution: 99,990

Working: 33.33% * 300,000 = 99,990