Corporation A has $87,239 in taxable income, and Corporation B has $8.7 million in taxable income. Suppose both firms have identified a new project that will increase taxable income by $9,371. How much more will Corporation B pay in additional taxes than will Corporation A? Use the tax rates in Table 2.3. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.) Taxable income 50,000 50,001- 75,000 75,001- 100,000 100,001 335,000 335,001 10,000,000 10,000,001 15,000,000 15,000,001-18,333,333 18,333,334+ Tax Rate 15% 25 34 39 34 35 38 35 TABLE 2.3 Corporate Tax Rates
Corporation A has $87,239 in taxable income, and Corporation B has $8.7 million in taxable income. Suppose both firms have identified a new project that will increase taxable income by $9,371. How much more will Corporation B pay in additional taxes than will Corporation A? Use the tax rates in Table 2.3. (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.) Taxable income 50,000 50,001- 75,000 75,001- 100,000 100,001 335,000 335,001 10,000,000 10,000,001 15,000,000 15,000,001-18,333,333 18,333,334+ Tax Rate 15% 25 34 39 34 35 38 35 TABLE 2.3 Corporate Tax Rates
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Corporation A has $87,239 in taxable income, and Corporation B has
$8.7 million in taxable income. Suppose both firms have identified a new
project that will increase taxable income by $9,371. How much more will
Corporation B pay in additional taxes than will Corporation A? Use the
tax rates in Table 2.3.
(Do not round intermediate calculations and round your final answer to
the nearest dollar amount. Omit the "$" sign and commas in your
response. For example, $123,456.78 should be entered as 123457.)
Taxable Income
0- 50,000
50,001- 75,000
75,001- 100,000
100,001 335,000
335,001-10,000,000
10,000,001-15,000,000
15,000,001-18,333,333
18,333,334+
Tax Rate
15%
25
34
39
34
35
38
35
TABLE 2.3
Corporate Tax Rates
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