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2. Calculate the tax liability for each of the following: a. Doctors Inc. is a c

ID: 2500710 • 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

Income Catergory Rate Tax liability a                135,000 100,000 to 335,000 $22,250 + 39% Of the amount over 100,000            35,900 b                210,500 100,000 to 335,000 $22,250 + 39% Of the amount over 100,000            65,345 c          40,000,000 18,333,333 and up 35%    14,000,000