Aquatech Microsystems reported a TI of $80,000 last year. If the state income tax rate is 6%, determine the (a) average federal tax rate, (b) overall effective tax rate, (c) total taxes to be paid based on the effective tax rate, and (d) total taxes paid to the state and paid to the federal government.
Aquatech Microsystems reported a TI of $80,000 last year. If the state income tax rate is 6%, determine the (a) average federal tax rate, (b) overall effective tax rate, (c) total taxes to be paid based on the effective tax rate, and (d) total taxes paid to the state and paid to the federal government.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Aquatech Microsystems reported a TI of $80,000
last year. If the state income tax rate is 6%,
determine the (a) average federal tax rate,
(b) overall effective tax rate, (c) total taxes to be
paid based on the effective tax rate, and (d) total
taxes paid to the state and paid to the federal
government.
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