(Corporate income tax) G. R. Edwin Inc. had sales of $6.19 million during the past year. The cost of goods sold amounted to $2.7 million. Operating expenses totaled $2.54 million, and interestexpense was $29,000. Use the corporate tax rates shown in the popup window, E, to determine the firm's tax liability. What are the firm's average and marginal tax rates?Data table(Round to the nearest dollar.)The firm's tax liability for the year is $The firm's average tax rate is ☐ %. (Round to two decimal places.)The firm's marginal tax rate is ☐ %. (Round to the nearest integer.)Taxable IncomeMarginal Tax Rate$0-$50,00015%$50,001-$75,00025%$75,001-$100,00034%$100,001-$335,00039%$335,001-$10,000,00034%$10,000,001-$15,000,000 35%$15,000,001-$18,333,333 38%Over $18,333,33335%(Click on the icon in order to copy its contents into a spreadsheet.)-

To determine the firm's tax liability, we need to calculate the taxable income and then apply the…

Answered: (Corporate income tax) G. R. Edwin Inc.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Given the tax rates as shown, what is the marginal and average tax rates for a firm with taxable income of $102,000? Taxable Income Tax Rate $0-50,000 15% $50,001-75,000 25% $75,001-100,000 34% $100,001-335,000 39%
An S corporation earns $6.30 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $3.00 dividend? A. $1.97 B. $2.95 C. $3.44 D. $2.46 OC
Use the information below to build a properly formatted income statement. A: The firm has 25,280,000 shares outstanding and its earnings per share is $2.40. Calculate Net Income. B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's operating income is 1.80 times its Net Income. Determine the firm's EBIT. E: Given your answer to D, calculate the firm's Interest Expense. F: After completing the above: Gross Profit is 18.00 times its Interest Expense. Calculate Gross Profit. G: Finally, the firm's Revenue is 1.50 times its EBIT. Calculate the firm's Revenue. INSTRUCTIONS: Write ratios involving dollar amounts out to the penny, with no dollar sign: 1000.00. All ratios and interest rates should be calculated as follows: 11.28 (no percent sign) For this problem: Net Income = Earnings before Taxes = Тах еxpens 3 Earnings before Taxes & Interest = Interest expense = Gross profit = Revenue =
(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.4 million. Gross profits totaled $1.08 million, and operating and depreciation expenses were $507,000 and $359,000, respectively. Dividend income for the year was $14,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, LOADING…, to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?
A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid per share if the company has a payout ratio of 45%? Answer to two decimals (dollars and cents) ASAP
Use the information below to build a properly formatted income statement. A: The firm has 12,640,500 shares outstanding and EPS is $3.20.Calculate Net Income . B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's Revenue is $183,600,000 and its operating margin is 45.00%. Calculate EBIT. E: After completing the above: Gross Profit is 1.65 times its EBIT . Calculate Gross Profit . F: Given the above information, calculate the firm's Operating Expenses . G: Given the above information, calculate the firm's Interest Expense .
2. Table is given below shows that marginal tax rates for Alejandro Corporation. Taxable Income of the Company is equal to $44.000. How much will the Company pay tax totally? Average tax rate? ( NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. Taxable Income ($) Tax Rate 0 - 16.000 10% 16.000 – 39.000 12% 39.000- 55.000 16% 55.000 - 70.000 19% 70.000 – 86.000 23%
Refer to the corporate marginal tax rate information in Table 2.3 . b-1 Compute the average tax rate for a corporation with exactly $335,001 in taxable income. Average tax rate % b-2 What is the average tax rate for a corporation with exactly $18,333,334? Average tax rate % c. The 39 percent and 38 percent tax rates both represent what is called a tax “bubble.” Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16)) Bubble rate %
Mars Corporation has Revenues of $50 million, Tax Expense of $5 million, total Other Expenses of $15 million, and Net Income of $30 million. What is Mars Corporation's income tax RATE? 25.0% 10.0% 14.3% 16.7%
If you deposit $100.00 in an account, every "month) for the next five (5) years earning 6%, calculate the future value of this annuity 5,000.00 6,050.25 6,977.00 7,300.25
The price earnings ratios for 4 public companies are: 5.2, 4.6, 3.4, 4.86. The after-tax capitalization rate is: a. 16.00% b. 18.08% c. 20.19% d. 22.15%
Which statement regarding relative valuation is true? a. Relative valuation using book values is more accurate than using market values. b. Relative valuation is often focused on current ratios that can be used to compare similar assets or entities. c. The value of a share of a hotel business can be compared to the value of a share of an airline business. d. Peer group average is when comparison of multiple pairings of similar entities {e.g., A vs B, B vs Ca nd A vs C) are made.

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