Table 2.3: Corporate Tax Rates as of 2015 Pay this Plus this Amount Percentage o
ID: 2336687 • Letter: T
Question
Table 2.3: Corporate Tax Rates as of 2015 Pay this Plus this Amount Percentage on Baseon Anything Income over the Base Taxable Income A oit s that in addition to the $269,500 of ppose avable income from operations in 2015, Acme S0-$50,000 $o 15% 25% 34% Steel had $3,500 of interest on state-issued $50,001- $75,000 $75,001-$100,000 $100,001 $335,000 $22,250 $335,001-$10,000,000 | $7,500 $13,750| | ds, $9,200 of dividends on common stock it owns in Big Ironworks, Inc. and $5,850 of dividends on common stock it owns in Channel Fence, Inc. 39% $113,900 | 34% 22. Use Exhibit 3. What is the firm's income tax liability? Use the tax schedule in Table 2.3. Use Exhibit 3. Given the tax schedule in table 2.3, what is the firm's average tax rate? (Express as a percentage to the nearest hundredth) 23.Explanation / Answer
the interest received on state bonds is not taxable and only 30% of dividend received is taxable
taxable inocme=269500+(30%*(9200+5850))
=274015
22)tax liability=22250+((274015-100000)*39%)
=90115.85
23)average tax rate=tax/taxable income
=90115.85/274015
=32.89%
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