(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.02 million, with the cost of goods sold equal to $590,000. The firm paid interest of $220,000 and its cash operating expenses were $105,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $14,000 in dividends to its stockholders. Depreciation expense was $52,000. 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 (Round to the nearest dollar.) The Robbins Corporation'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 Income $0-$50,000 Marginal Tax Rate 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% (Click on the icon in order to copy its contents into a spreadsheet.)
(Corporate income tax) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.02 million, with the cost of goods sold equal to $590,000. The firm paid interest of $220,000 and its cash operating expenses were $105,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $14,000 in dividends to its stockholders. Depreciation expense was $52,000. 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 (Round to the nearest dollar.) The Robbins Corporation'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 Income $0-$50,000 Marginal Tax Rate 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% (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) The Robbins Corporation is an oil wholesaler. The firm's sales last year were $1.02 million, with the cost of goods sold equal to $590,000. The firm paid interest of $220,000 and its
cash operating expenses were $105,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22% of the shares, while paying only $14,000 in dividends to its stockholders.
Depreciation expense was $52,000. 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
(Round to the nearest dollar.)
The Robbins Corporation'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 Income
$0-$50,000
Marginal Tax Rate
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%
(Click on the icon in order to copy its contents into a spreadsheet.)
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