The state in which Zyn Inc. operates imposes a 15% corporate tax rate. Zyn had a
ID: 2462910 • Letter: T
Question
The state in which Zyn Inc. operates imposes a 15% corporate tax rate. Zyn had a taxable income of $10,000,000 last year. Using the attached Federal Tax Schedule, calculate Zyn’s total taxes for last year.
Taxable Income
Tax Rate
Corporate Income Tax
Not over $50,000
$50,000 - $75,000
$75,000 - $100,000
$100,000 - $335,000
$335,000 - $10 million
$10 million - $15 million
$15 million - $18,333,333
³ $18,333,333
15%
25%
34%
39%
34%
35%
38%
35%
15% over $0
$7,500 + 25% over $50,000
$13,750 + 34% over $75,000
$22,250 + 39% over $100,000
$113,900 + 34% over $335,000
$3,400,000 + 35% over $10 million
$5,150,000 + 38% over $15 million
Flat rate at 35%
Taxable Income
Tax Rate
Corporate Income Tax
Not over $50,000
$50,000 - $75,000
$75,000 - $100,000
$100,000 - $335,000
$335,000 - $10 million
$10 million - $15 million
$15 million - $18,333,333
³ $18,333,333
15%
25%
34%
39%
34%
35%
38%
35%
15% over $0
$7,500 + 25% over $50,000
$13,750 + 34% over $75,000
$22,250 + 39% over $100,000
$113,900 + 34% over $335,000
$3,400,000 + 35% over $10 million
$5,150,000 + 38% over $15 million
Flat rate at 35%
Explanation / Answer
Taking the tax rates from the above table, the $10mn fall into the $10mn to $15mn tax bracket. Since their is no income above $10mn, the tax will be equal to $34,00,000.
Zyn Inc total tax= $3,400,000
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