Corporate Tax Rate ScheduleRange of taxable income$0 to50,000 to75,000 to100,000 to335,000 to10,000,000 to15,000,000 toOver 18,333,333$50,00075,000100,000335,00010,000,00015,000,00018,333,333Base tax++ (15%$07,500 + (25%13,750 + (34%22,250 + (39%113,900 + (34%3,400,000 + (35%5,150,000 + (38%6,416,667+ (35%Tax calculation(Marginal ratex amount over base bracket)x amount overx amount overx amount overx amount overx amount overx amount overx amount overx amount over$0)50,000)75,000)100,000)335,000)10,000,000)15,000,000)18,333,333) Marginal corporate tax rates Using the corporate tax rate schedule given here. perform the following:a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $13,900; $59,200; $88,000; $196,000; $399,000; $1.5 million; and $20.3 million.b. Plot the marginal tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). Explain the relationship between these variables.a. The marginal tax rate for earnings before taxes of $13,900 is %. (Round to the nearest integer.)C

The marginal tax rate is a key concept in the field of taxation and finance. It refers to the rate…

Corporate Tax Rate Schedule Range of taxable income $0 to 50,000 to 75,000 to 100,000 to 335,000 to 10,000,000 to 15,000,000 to Over 18,333,333 $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 Base tax + $0 + (15% 7,500 + (25% 13,750 + (34% 22,250 + (39% 113,900 + (34% + (35% + (38% 3,400,000 5,150,000 6,416,667 + (35% Tax calculation (Marginal rate x amount over base bracket) x amount over x amount over x amount over x amount over x amount over x amount over x amount over x amount over SO) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333)

Corporate Tax Rate Schedule Range of taxable income $0 to 50,000 to 75,000 to 100,000 to 335,000 to 10,000,000 to 15,000,000 to Over 18,333,333 $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 Base tax + $0 + (15% 7,500 + (25% 13,750 + (34% 22,250 + (39% 113,900 + (34% + (35% + (38% 3,400,000 5,150,000 6,416,667 + (35% Tax calculation (Marginal rate x amount over base bracket) x amount over x amount over x amount over x amount over x amount over x amount over x amount over x amount over SO) 50,000) 75,000) 100,000) 335,000) 10,000,000) 15,000,000) 18,333,333)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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