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(TCOs 1, 8, and 9) Calculate the income tax liability for each of the following

ID: 2473146 • Letter: #

Question

(TCOs 1, 8, and 9) Calculate the income tax liability for each of the following unrelated C Corporations. The corporations are unrelated.

Name of C Corporation

Amount of taxable Income

a:                    Devon Corporation

b:                    Lyons Corporation

c:                     Skyland Corporation(a personal Service corporation)

Name of C Corporation

Amount of taxable Income

a:                    Devon Corporation

68,500$

b:                    Lyons Corporation

10,800,000$

c:                     Skyland Corporation(a personal Service corporation)

172,00$

Explanation / Answer

Name of C Corporation Amount of taxable income Tax Rate Slab Tax Rate Tax Devon Corporation $                                       68,500 50000-75000 7500 plus 25% on amount over 50000 $              12,125 Lyons Corporation $                              10,800,000 10000000-15000000 3400000 plus 35% of amount over 10000000 $        3,680,000 Skyland Corporation $                                       17,200 Flat 35% $                6,020