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he following taxation problem

he following taxation problem

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1, 1.1 Systems of Linear Equations . For this 1st problem and only this problem you may state the solution in decimals, but show the set up of the equations. > Corporation that made $1, 000, 000 net profit has the following taxation problem Its federal tax rate is 30% Ca state to rate is 10 % local tax rate is 5% According to fairness principle oftaxation, the tax paidto one authority can be subtracted as expense I prior to calculating the tax for the other taxation authorities. So the combined taxation rate is not the sum of 30 %+10 %%+5% Tocalculate the tax first find f= amount subject to federal tax s=amount subject to state tax 13amount subject to localrcx then apply the corresponding rate to calculate as your answerthe federal, state, and local tax
Transcribed Image Text:Problem 1, 1.1 Systems of Linear Equations . For this 1st problem and only this problem you may state the solution in decimals, but show the set up of the equations. > Corporation that made $1, 000, 000 net profit has the following taxation problem Its federal tax rate is 30% Ca state to rate is 10 % local tax rate is 5% According to fairness principle oftaxation, the tax paidto one authority can be subtracted as expense I prior to calculating the tax for the other taxation authorities. So the combined taxation rate is not the sum of 30 %+10 %%+5% Tocalculate the tax first find f= amount subject to federal tax s=amount subject to state tax 13amount subject to localrcx then apply the corresponding rate to calculate as your answerthe federal, state, and local tax
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