Corporations face the following tax schedule: Taxable Income Base Up to $50,000 Tax on Base of Bracket Percentage on Excess above $0 15% $50,000-$75,000 7,500 25% $75,000-$100,000 13,750 34% $100,000-$335,000 22,250 39% $335,000- 1,13,900 34% $10,000,000 $10,000,000- 34,00,000 35% $15,000,000 $15,000,000- $18,333,333 Over $18,333,333 51,50,000 64,16,667 38% 35% Company Z has $65,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends. a. $18,736 b. $17,225 c. $15,110 d. $11,786 e. $18,888
Corporations face the following tax schedule: Taxable Income Base Up to $50,000 Tax on Base of Bracket Percentage on Excess above $0 15% $50,000-$75,000 7,500 25% $75,000-$100,000 13,750 34% $100,000-$335,000 22,250 39% $335,000- 1,13,900 34% $10,000,000 $10,000,000- 34,00,000 35% $15,000,000 $15,000,000- $18,333,333 Over $18,333,333 51,50,000 64,16,667 38% 35% Company Z has $65,000 of taxable income from its operations, $5,000 of interest income, and $30,000 of dividend income from preferred stock it holds in other corporations. What is Company Z's tax liability? Assume a 70% dividend exclusion for Tax on Dividends. a. $18,736 b. $17,225 c. $15,110 d. $11,786 e. $18,888
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 1BCRQ
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Transcribed Image Text:Corporations face the following tax schedule:
Taxable Income
Base Up to $50,000
Tax on Base of
Bracket
Percentage on Excess
above
$0
15%
$50,000-$75,000
7,500
25%
$75,000-$100,000
13,750
34%
$100,000-$335,000
22,250
39%
$335,000-
1,13,900
34%
$10,000,000
$10,000,000-
34,00,000
35%
$15,000,000
$15,000,000-
$18,333,333
Over $18,333,333
51,50,000
64,16,667
38%
35%
Company Z has $65,000 of taxable income from its
operations, $5,000 of interest income, and $30,000 of
dividend income from preferred stock it holds in other
corporations.
What is Company Z's tax liability? Assume a 70% dividend
exclusion for Tax on Dividends.
a. $18,736
b. $17,225
c. $15,110
d. $11,786
e. $18,888
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