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A corporation has a taxable income of $1,918,158. At this income level, the federal income rate is 51%, the state tax rate is 20%, and the local tax rate is 12%. If each tax rate is

A corporation has a taxable income of $1,918,158. At this income level, the federal income rate is 51%, the state tax rate is 20%, and the local tax rate is 12%. If each tax rate is

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation has a taxable income of $1,918,158. At this income level, the federal income rate is 51%, the state tax rate is 20%, and the local tax rate is 12%. If each tax rate is applied to the the total taxable income, the company would have to pay $1,918,158 * 0.51 in federal taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes if the customary deductions are taken into consideration? Round to the nearest dollar. LA
Transcribed Image Text:A corporation has a taxable income of $1,918,158. At this income level, the federal income rate is 51%, the state tax rate is 20%, and the local tax rate is 12%. If each tax rate is applied to the the total taxable income, the company would have to pay $1,918,158 * 0.51 in federal taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes if the customary deductions are taken into consideration? Round to the nearest dollar. LA
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