Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2021 the firm earned $1,666,300 before taxes. a. Calculate the firm's tax liability using a flat tax rate of 21%. b. How much are Tantor Supply's 2021 after-tax earnings? c. What was the firm's average tax rate? d. What was the firm's marginal tax rate? a. The firm's tax liability is $ (Round to the nearest dollar.)

Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2021 the firm earned $1,666,300 before taxes. a. Calculate the firm's tax liability using a flat tax rate of 21%. b. How much are Tantor Supply's 2021 after-tax earnings? c. What was the firm's average tax rate? d. What was the firm's marginal tax rate? a. The firm's tax liability is $ (Round to the nearest dollar.)

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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Subject Finance
Thrasher Company reported income before taxes of $180,000. The company is in a 30% income tax bracket. Also, Thrasher's income statement contained a charge for interest expense amounting to $60,000. Based on this information alone, what is the company's times-interest-earned ratio? Multiple Choice 4.0 3.1 2.1 3.0
A company recently reported $9.8 million of net income. Its EBIT was $15 million, and its federal tax rate was 22%(ignore any possible state corporate taxes).What was its EBT? Blank 1What was its Tax liability? Blank 2What was its interest expense? Blank 3
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
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
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Ans.
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 %
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