Corporations face the following tax schedule: Taxable Income Up to $50,000 Tax on Base of Bracket Percentage on Excess above Base $0 $50,000-$75,000 $7,500 $75,000-$100,000 $13,750 $100,000-$335,000 $22,250 $335,000-$10,000,000 $113,900 $10,000,000-$15,000,000 $3,400,000 $15,000,000-$18,333,333 $5,150,000 Over $18,333,333 $6,416,667 15% 25% 34% 39% 34% 35% 38% 35% Pinnacle Corporation has $82,500 of taxable income from operations, $8,200 of interest income, and $45,000 of dividend income from preferred stock in other corporations. What is Pinnacle Corporation's tax liability? Assume a 65% dividend exclusion for tax on dividends.
Corporations face the following tax schedule: Taxable Income Up to $50,000 Tax on Base of Bracket Percentage on Excess above Base $0 $50,000-$75,000 $7,500 $75,000-$100,000 $13,750 $100,000-$335,000 $22,250 $335,000-$10,000,000 $113,900 $10,000,000-$15,000,000 $3,400,000 $15,000,000-$18,333,333 $5,150,000 Over $18,333,333 $6,416,667 15% 25% 34% 39% 34% 35% 38% 35% Pinnacle Corporation has $82,500 of taxable income from operations, $8,200 of interest income, and $45,000 of dividend income from preferred stock in other corporations. What is Pinnacle 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
Related questions
Question
kindly help me with this General accounting question
Transcribed Image Text:Corporations face the following tax schedule:
Taxable Income
Up to $50,000
Tax on Base of Bracket Percentage on Excess above Base
$0
$50,000-$75,000
$7,500
$75,000-$100,000
$13,750
$100,000-$335,000
$22,250
$335,000-$10,000,000 $113,900
$10,000,000-$15,000,000 $3,400,000
$15,000,000-$18,333,333 $5,150,000
Over $18,333,333
$6,416,667
15%
25%
34%
39%
34%
35%
38%
35%
Pinnacle Corporation has $82,500 of taxable income from operations, $8,200 of interest
income, and $45,000 of dividend income from preferred stock in other corporations.
What is Pinnacle Corporation's tax liability? Assume a 65% dividend exclusion for tax on
dividends.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning