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Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 SO 15% $50,000-$75,000 7,500 25% $75,000-$100,000 13,750 34% $100,000-$335,000 22,250 39% $335,000-$10,000,000 113,900 34% $10,000,000-$15,000,000 3,400,000 35% $15,000,000-$18,333,333 5,150,000 38% Over $18,333,333 6,416,667 35% Company j 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 j's tax liability? Assume a 70% dividend exclusion for Tax on Dividends.

Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 SO 15% $50,000-$75,000 7,500 25% $75,000-$100,000 13,750 34% $100,000-$335,000 22,250 39% $335,000-$10,000,000 113,900 34% $10,000,000-$15,000,000 3,400,000 35% $15,000,000-$18,333,333 5,150,000 38% Over $18,333,333 6,416,667 35% Company j 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 j's tax liability? Assume a 70% dividend exclusion for Tax on Dividends.

SWFT Essntl Tax Individ/Bus Entities 2020
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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Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 SO 15% $50,000-$75,000 7,500 25% $75,000-$100,000 13,750 34% $100,000-$335,000 22,250 39% $335,000-$10,000,000 113,900 34% $10,000,000-$15,000,000 3,400,000 35% $15,000,000-$18,333,333 5,150,000 38% Over $18,333,333 6,416,667 35% Company j 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 j's tax liability? Assume a 70% dividend exclusion for Tax on Dividends.
Transcribed Image Text:Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 SO 15% $50,000-$75,000 7,500 25% $75,000-$100,000 13,750 34% $100,000-$335,000 22,250 39% $335,000-$10,000,000 113,900 34% $10,000,000-$15,000,000 3,400,000 35% $15,000,000-$18,333,333 5,150,000 38% Over $18,333,333 6,416,667 35% Company j 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 j's tax liability? Assume a 70% dividend exclusion for Tax on Dividends.
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