A corporation has a taxable income of $2,648,421. At this income level, the federal income rate is 51%, the state tax rate is 22%, 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 $2,648,421 * 0.12 in local taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in local taxes if the customary deductions are taken into consideration? $ . Round to the nearest dollar.
A corporation has a taxable income of $2,648,421. At this income level, the federal income rate is 51%, the state tax rate is 22%, 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 $2,648,421 * 0.12 in local taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in local taxes if the customary deductions are taken into consideration?
$ . Round to the nearest dollar.
A corporation's taxable income is taxed at the federal, state, and local levels. It is customary for an agency to deduct the taxes paid to the other agencies before computing the company's tax liability. For example, the federal taxes are based on the income that remains after the state and local taxes are deducted. Similarly, the state taxes are based on the income that remains after federal and local taxes are deducted; the local taxes are based on the income that remains after state and federal taxes are deducted.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
