Corporations face the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 $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-$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% Meridian Corporation has $82,500 of taxable income from its operations, $7,500 of interest income, and $40,000 of dividend income from preferred stock it holds in other corporations. What is Meridian Corporation's tax liability? Assume a 65% 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 $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-$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% Meridian Corporation has $82,500 of taxable income from its operations, $7,500 of interest income, and $40,000 of dividend income from preferred stock it holds in other corporations. What is Meridian Corporation's tax liability? Assume a 65% dividend exclusion for Tax on Dividends.
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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General accounting
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
$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-$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%
Meridian Corporation has $82,500 of taxable income from its operations, $7,500 of interest
income, and $40,000 of dividend income from preferred stock it holds in other corporations.
What is Meridian Corporation's tax liability? Assume a 65% dividend exclusion for Tax on
Dividends.
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