2. Calculate the tax liability for each of the following: a. Doctors Inc. is a c
ID: 2500241 • Letter: 2
Question
2.
Calculate the tax liability for each of the following:
a. Doctors Inc. is a corporation owned by four physicians in which they operate their medical practice. For the current year, Doctors Inc. had taxable income of $135,000.
.
b. TasteCo, Inc. reported $210,500 of taxable income this year.
c. John's, Inc. manufactures and sells fine furniture. It had taxable income of $40,000,000.
2.
Calculate the tax liability for each of the following:
a. Doctors Inc. is a corporation owned by four physicians in which they operate their medical practice. For the current year, Doctors Inc. had taxable income of $135,000.
.
b. TasteCo, Inc. reported $210,500 of taxable income this year.
c. John's, Inc. manufactures and sells fine furniture. It had taxable income of $40,000,000.
Explanation / Answer
Calculation of tax liabilities:
a. Taxable Income $135000
Tax liability = 22250 + 39% of 35000 = $35900
b. Taxable Income $210500
Tax liability = 22250 + 39% of 110500 = $65345
c. Taxable Income $40,000,000
Tax liability = 35% of $40,000,000 = $14000000
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