(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.09 million, with the cost of goods sold equal to $680,000. The firm paid interest of $202,000 and its cash operating expenses were $102,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $11,000 in dividends to its stockholders. Depreciation expense was $51,000. Use the corporate tax rates shown in the popup window, to compute the firm's tax liability. What are the firm's average and marginal tax rates? Data table The Robbins Corporation's tax liability for the year is $ Taxable Income Marginal Tax Rate $0-$50,000 15% $50,001 - $75,000 25% $75,001 - $100,000 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% -
(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.09 million, with the cost of goods sold equal to $680,000. The firm paid interest of $202,000 and its cash operating expenses were $102,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $11,000 in dividends to its stockholders. Depreciation expense was $51,000. Use the corporate tax rates shown in the popup window, to compute the firm's tax liability. What are the firm's average and marginal tax rates? Data table The Robbins Corporation's tax liability for the year is $ Taxable Income Marginal Tax Rate $0-$50,000 15% $50,001 - $75,000 25% $75,001 - $100,000 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% -
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) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.09 million, with the cost of goods sold equal to $680,000. The firm paid interest of $202,000 and its
cash operating expenses were $102,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $11,000 in dividends to its stockholders.
Depreciation expense was $51,000. Use the corporate tax rates shown in the popup window, to compute the firm's tax liability. What are the firm's average and marginal tax rates?
Data table
The Robbins Corporation's tax liability for the year is $
Taxable Income
Marginal Tax Rate
$0-$50,000
15%
$50,001 - $75,000
25%
$75,001 - $100,000
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%
-
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