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Corporation Growth has $86,000 in taxable income, and Corporation Income has $8,600,000 in taxable income. Use the tax rates from Table 2.3.    a. What is the tax bill for each firm?    Firms Tax Bill   Corporation Growth $      Corporation Income $          b. Suppose both firms have identified a new project that will increase taxable income by $10,000. How much in additional taxes will each firm pay?      Firms Additional taxes     Corporation Growth   $          Corporation Income   $

Corporation Growth has $86,000 in taxable income, and Corporation Income has $8,600,000 in taxable income. Use the tax rates from Table 2.3.    a. What is the tax bill for each firm?    Firms Tax Bill   Corporation Growth $      Corporation Income $          b. Suppose both firms have identified a new project that will increase taxable income by $10,000. How much in additional taxes will each firm pay?      Firms Additional taxes     Corporation Growth   $          Corporation Income   $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Corporation Growth has $86,000 in taxable income, and Corporation Income has $8,600,000 in taxable income. Use the tax rates from Table 2.3.

  

a. What is the tax bill for each firm?

  

Firms Tax Bill
  Corporation Growth $   
  Corporation Income $   
 

   

b.

Suppose both firms have identified a new project that will increase taxable income by $10,000. How much in additional taxes will each firm pay?

    

Firms Additional taxes  
  Corporation Growth   $       
  Corporation Income   $       
 

 

Taxable Income Tax Rate 0- 50,000 15% 50,001- 75,000 25 75,001- 100,000 100,001- 335,000 34 39 335,001–10,000,000 34 10,000,001–15,000,000 35 15,000,001–18,333,333 38 18,333,334+ 35 %24
Transcribed Image Text:Taxable Income Tax Rate 0- 50,000 15% 50,001- 75,000 25 75,001- 100,000 100,001- 335,000 34 39 335,001–10,000,000 34 10,000,001–15,000,000 35 15,000,001–18,333,333 38 18,333,334+ 35 %24
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