(Corporate income tax) Last year Sanderson, Inc. had sales of $3.5 million. The firm's cost of goods sold came to $2.4 million, its operating expenses excluding depreciation of $100,000 were $409,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received $53,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $24,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, to calculate the corporation's tax liability. What are the firm's average and marginal tax rates? The firm's tax liability for the year is $ (Round to the nearest dollar.) The firm's average tax rate is %. (Round to two decimal places.) The firm's marginal tax rate is %. (Round to the nearest integer.) Data table Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 Marginal Tax Rate 15% 25% 34% $100,001-$335,000 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 | 35% $15,000,001-$18,333,333 | 38% Over $18,333,333 35% (Click on the icon in order to copy its contents into a spreadsheet)
(Corporate income tax) Last year Sanderson, Inc. had sales of $3.5 million. The firm's cost of goods sold came to $2.4 million, its operating expenses excluding depreciation of $100,000 were $409,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received $53,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $24,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, to calculate the corporation's tax liability. What are the firm's average and marginal tax rates? The firm's tax liability for the year is $ (Round to the nearest dollar.) The firm's average tax rate is %. (Round to two decimal places.) The firm's marginal tax rate is %. (Round to the nearest integer.) Data table Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 Marginal Tax Rate 15% 25% 34% $100,001-$335,000 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 | 35% $15,000,001-$18,333,333 | 38% Over $18,333,333 35% (Click on the icon in order to copy its contents into a spreadsheet)
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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Transcribed Image Text:(Corporate income tax) Last year Sanderson, Inc. had sales of $3.5 million. The firm's cost of goods sold came to $2.4 million, its operating expenses excluding depreciation of $100,000 were $409,000, and the firm paid $149,000 in interest on its bank loans. Also, the corporation received
$53,000 in dividend income (from a company in which it owned less than 20 percent of its shares) but paid $24,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window, to calculate the corporation's tax liability. What are the firm's
average and marginal tax rates?
The firm's tax liability for the year is $ (Round to the nearest dollar.)
The firm's average tax rate is
%. (Round to two decimal places.)
The firm's marginal tax rate is %. (Round to the nearest integer.)
Data table
Taxable Income
$0-$50,000
$50,001-$75,000
$75,001-$100,000
Marginal Tax Rate
15%
25%
34%
$100,001-$335,000
39%
$335,001-$10,000,000
34%
$10,000,001-$15,000,000 | 35%
$15,000,001-$18,333,333 | 38%
Over $18,333,333
35%
(Click on the icon in order to copy its contents into a spreadsheet)
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